DCIT (TDS) 2(1), MUMBAI V. LARSEN & TOUBRO LTD (E& C DIVISION), MUMBAI

ITA 7630/MUM/2013

• Counselvise Citation: [2015] 121 COUNSELVISE.COM (IT) 0771 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 5 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-06-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2010-2011
• Appeal Filed On: 30-12-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S PADMAJA

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES A MUMBAI . . , , BEFORE SHRI I.P. BANSAL, JUDICIAL MEMBER AND SHRI RAJENDRA, ACCOUNTANT MEMBER . / ITA NO.7630/MUM/2013 / ASSESSMENT YEAR 2010-11 DY.COMMISSIONER OF INCOME TAX (TDS) 2(1), ROOM NO.702,7 TH FLOOR, SMT.K.G.MITTAL AYURVEDIC HOSPITAL BUILDING, CHARNI ROAD, MUMBAI 400002. / VS. M/S. LARSEN & TOUBRO LTD. (E&C DIVISION), 5 TH FLOOR, EPC BLOCK, GATE NO.1, SAKI VIHAR ROAD, MUMBAI 400 072. ./ ./ PAN/GIR NO. : AAAL0140P ( / APPELLANT ) .. ( / RESPONDENT ) APPELLANT BY MS. S.PADMAJA RESPONDENT BY MS. USHA GOPALAN ! ' / DATE OF HEARING : 04/06/2015 ! ' / DATE OF PRONOUNCEMENT : 04/06/2015 / O R D E R PER I.P.BANSAL, J.M: THIS IS AN APPEAL FILED BY THE REVENUE AND IT IS D IRECTED AGAINST ORDER PASSED BY LD. CIT(A)-14, MUMBAI DATED 15/10/2013 FO R ASSESSMENT YEAR 2010-11. GROUNDS OF APPEAL READ AS UNDER: 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LEARNED CIT(A) ERRED IN ALLOWING THE APPEAL OF THE ASSESSEE ON THE BASIS OF REASONING THAT BANK GUARANTEE CHARGES ARE NOT IN THE NATURE OF 'COMMISS ION' AND NO TDS WAS REQUIRED TO BE DEDUCTED ON SUCH CHARGES PAID TO BAN KS U/S.194H OF THE I.T. ACT, 1961. . / ITA NO.7630/MUM/2013 / ASSESSMENT YEAR 2010-11 2 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW, THE LEARNED CIT(A) HAS ERRED IN DELETING THE INTEREST U/S 201(1 A) OF THE IT ACT, 1961, DETERMINED BY THE AD AS THE TAX DETERMINED HAS ALRE ADY BEEN DELETED BY HIM ON THE BANK GUARANTEE CHARGES AND INTEREST DELETION IS CONSEQUENTIAL TO THE QUANTUM DELETION FOR WHICH FURTHER APPEAL HAS BEEN RECOMMEN DED VIDE GROUND NO.1. 2. AT THE OUTSET IT WAS SUBMITTED BY LD. AR THAT TH IS ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE BY THE DECISION OF MUMBAI IT AT IN THE CASE OF KOTAK SECURITIES LTD. VS. DCIT, 147 TTJ 443 (MUM), COPY P LACED ON OUR RECORD, WHEREIN IT HAS BEEN HELD THAT WHEN BANK ISSUES BANK GUARANTEE ON BEHALF OF ASSESSEE, THERE IS NO PRINCIPAL AGENT RELATIONSHIP BETWEEN BANK AND ASSESSEE AND, THEREFORE, ASSESEE IS NOT REQUIRED TO DEDUCT T AX AT SOURCE UNDER SECTION 194H FROM PAYMENTS OF BANK GUARANTEE COMMISSION MAD E TO THE BANK. 3. LD. DR DID NOT CONTROVERT SUCH SUBMISSION OF LD. AR. 4. IN THIS VIEW OF THE SITUATION WE HAVE HEARD BOTH THE PARTIES. LD. CIT(A) WHILE DECIDING THE ISSUE IN FAVOUR OF ASSESSEE HAS FOLLOWED THE AFOREMENTIONED DECISION OF TRIBUNAL AND HAS HELD THAT TDS WAS NOT REQUIRED TO BE DEDUCTED UNDER SECTION 194H, THEREFORE, LEVY OF INTEREST UN DER SECTION 201(1A) WAS NOT IN ACCORDANCE WITH LAW. SINCE NO CONTRARY DECISION WAS BROUGHT TO OUR NOTICE, RESPECTFULLY FOLLOWING THE SAID DECISION OF TRIBUN AL IN THE CASE OF KOTAK SECURITIES LTD.(SUPRA), WE DECLINE TO INTERFERE IN THE RELIEF GRANTED BY LD. CIT(A). 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 04/06/2015 () * + 04/06/2015 SD/- SD/- ( , / RAJENDRA) ( . . / I.P. BANSAL) / ACCOUNTANT MEMBER / JUDICIAL MEMBER ( MUMBAI; * DATED 04/06/2015 . / ITA NO.7630/MUM/2013 / ASSESSMENT YEAR 2010-11 3 ! / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. .! ( ) / THE CIT(A)- 4. .! / CIT 5. /0 !12 , ' 12 , ( / DR, ITAT, MUMBAI 6. 3 / GUARD FILE. / BY ORDER, /! ! //TRUE COPY// / (DY./ASSTT. REGISTRAR) , ( / ITAT, MUMBAI . . ./ VM , SR. PS