2016 (1) TMI 1279

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..... Lakhani (AR) ORDER Ashwani Taneja (Accountant Member) The present appeal has been filed by the Assessee against the order of Ld. Commissioner of Income Tax (Appeals)-14, Mumbai {(in short 'CIT(A)'}, dated 12.03.2014 for the assessment year 2010-11, passed against the order passed by the ACIT (TDS) (in short 'AO') u/s 201(1)/201 (1A) of the Act, on the following grounds: "i. On ....

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....resentative (AR) on behalf of the Assessee and by Shri B. Yadagiri, Departmental Representative (DR) on behalf of the Revenue. 3. The issue raised in this appeal is whether the assessee was liable to deduct tax at source on the amount of guarantee commission paid to the bank, u/s 194H of the Act. 3.1. During the course of hearing, it has been brought to the notice of the bench by Ld. Counsel....

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.... all it does is to accept the commitment of making payment of a specified amount to on demand, the beneficiary and it is in consideration of this commitment, the bank charges a which is customarily termed as 'Bank Guarantee Commission'. While it is termed as guarantee commission it is not in the nature of commission as it is understood in common business parlance and in the context of the sect....