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TMI Blog2020 (1) TMI 77X X X X Extracts X X X X X X X X Extracts X X X X ..... nder section 40(a)(ia) of the Act cannot be sustained. We accordingly allow the grounds of appeal, and direct the assessing officer to delete the addition - Decided in favour of assessee. - ITA No.2939/Del/2017 (Assessment Year: 2013-14) - - - Dated:- 19-11-2019 - SHRI R.K. PANDA, ACCOUNTANT MEMBER AND SHRI K. NARASIMHA CHARY, JUDICIAL MEMBER Assessee by Mr. Gautam Jain, Adv. Revenue by Ms. Rakhi Vimal, Sr. DR ORDER PER K. NARASIMHA CHARY, JM Aggrieved by the Order dated 27.04.2017 in Appeal No. 14/16-17 passed by the Ld. Commissioner of Income Tax (Appeals)- 6, Delhi ( Ld. CIT(A) ), M/s. NKC Projects (P) Ltd., ( the assessee ) preferred this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... antee commission of ₹ 1,50,59,663/- debited to P L account till 31/12/2012, but since the assessee did not deduct the tax at source, the claim of the assessee of ₹ 1,50,59,663/- was to be disallowed under section 40(a)(ia) of the Act on account of non-deduction of tax at source on bank guarantee charges and the same was added to the income of the assessee. 4. Assessee preferred appeal to the Ld. CIT(A). Ld. CIT(A) by way of impugned order held that the scheme of notification of payments under section 197A (1F) of the Act presupposes that a payment which has been notified under such subsection was not exempted from deduction of tax before the date of notification of such payment and the power of notification under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee had bona fides reason to believe TDS was not deductible, section 40(a)(ia) of the Act has no application for the allowability of the expenditure. He further submitted that the issue is no longer res Integra inasmuch as a coordinate Bench of this Tribunal in assessee s own case in ITA No. 1517/Del/2015 for the assessment year 2011-12 held that when there is no principal agent relationship between the bank issuing bank guarantee and the assessee, transaction between them is not the transaction between principal and agent so as to attract tax deduction under section 194H of the Act. 6. Per contra, it is the argument of the Ld. DR that the authorities below carefully approached the issue in the light of the provisions ..... X X X X Extracts X X X X X X X X Extracts X X X X
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