2014 (3) TMI 1116

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.... E R Per J.Sudhakar Reddy (AM) : This is an appeal filed by the Revenue directed against the order of the Commissioner of Income-tax (Appeals), Vijayawada, dated 22.01.2013, on the following grounds:- "a. The ld.CIT(A) erred both in law and in facts of the case. b. The ld.CIT(A) erred in deleting the addition made u/s 40(a)(ia)of Rs. 10,79,949/- since the guarantee commission paid to bank ....

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....n the case of Kotak Securities Limited (supra) held as follows:- "There is no principal agent relationship between the bank issuing the bank guarantee and the assessee. When bank issues the bank guarantee, on behalf of the assessee, 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 ba....