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TMI Blog2019 (2) TMI 536X X X X Extracts X X X X X X X X Extracts X X X X ..... time of payment of such income whichever is earlier, deducted income tax at the rate of 5%. This specific provision requiring deduction of tax at source in relation to payment of commission of brokerage cannot be ignored while examining the payment of brokerage in the present case so as to take the case within the ambit of Section 194J of the Act as was admitted by the Assessing Officer, CIT (App ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the case and in law, the ITAT erred in holding that the sub-brokerage paid would fall under the provisions of section 194H and not under the provisions of section 194J, despite the holding company providing various Professional or Technical Services and the assessee not specifically availing any services exclusively pertaining to buying and selling of securities? 2. The respondent-asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ould arise. The Assessing Officer did not accept such a contention. 3. The assessee carried the matter in appeal. Commissioner (Appeals) accepted the assessee's contention, but invoked the provisions of Section 40A(2)(b) of the Act. He restricted sub-brokerage to 50% of the expenditure. 4. The revenue as well as the assessee filed appeals before the Tribunal. The Tribunal rejected the re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shall, at the time of credit of such income to the account of the payee or at the time of payment of such income in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon at the rate of 5%. 6. In terms of this provision therefore, any person responsible for paying to a resident any income by way of commission or brokerage would at the t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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