2019 (2) TMI 650

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....Issues being identical, we may notice facts from Income Tax Appeal No.1382 of 2016. 2. Revenue has filed this appeal against the judgment of the Income Tax Appellate Tribunal dated 6th November, 2015 raising following questions for our consideration: "I. Whether on the facts and in the circumstances of the case and in law, the ITAT is correct in holding that the payment of Guarantee Commission ....

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....uarantee Banks are nothing but a constructive agent for the Assessee?" IV. Whether on the facts and in the circumstances of the case and in law, the ITAT is correct in ignoring that the Section 194H of the Act gives an inclusive definition of "Commission or Brokerage" and has wide coverage to clearly include the payment of Guarantee Commission paid by the Assessee to the Banks?" 3. Learned coun....

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....rokerage to deduct tax at source. The Tribunal was of the opinion that the words "commission or brokerage" must take colour from each other. The Tribunal was of the opinion that the payment in question, though categorized as "bank guarantee commission"is not strictly speaking payment of commission since there is no principal to agent relationship between the payer and the payee. The Tribunal, th....