https://www.taxtmi.com/caselaws?id=375023 The High Court upheld the ITAT's decision that Guarantee Commission paid to Banks did not fall under Section 194H of the Income Tax Act as it was deemed payment for banking services, not agent commission, due to the absence of a principal-agent relationship. The Assessee was not held liable to deduct tax at source under Section 194H, as the payment was categorized as bank charges, exempting them from tax deduction obligations. The Court rejected the argument of a Principal Agent relationship and affirmed that the payment did not qualify as commission or brokerage under Section 194H, resulting in the dismissal of the appeal. en-us Fri, 18 Jan 2019 00:00:00 +0530 Wed, 13 Feb 2019 06:10:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=375023 The High Court upheld the ITAT's decision that Guarantee Commission paid to Banks did not fall under Section 194H of the Income Tax Act as it was deemed payment for banking services, not agent commission, due to the absence of a principal-agent relationship. The Assessee was not held liable to deduct tax at source under Section 194H, as the payment was categorized as bank charges, exempting them from tax deduction obligations. The Court rejected the argument of a Principal Agent relationship and affirmed that the payment did not qualify as commission or brokerage under Section 194H, resulting in the dismissal of the appeal. Case-Laws Income Tax Fri, 18 Jan 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=375023