Dismissing the appeal of the revenue the Court held that payment of guarantee commission made by assessee to banks was not covered under commission or brokerage as defined under S.194H of the Act. Followed CIT v. Larsen & Toubro Ltd ( 2019) 260 Taxman 271 (Bom.)(HC)
CIT v. Nimbus Communications Ltd. (2019) 266 Taxman 376 (Bom.)(HC) Editorial: SLP of revenue is dismissed; CIT v. Nimbus Communications Ltd. (2019) 266 Taxman 375 (SC)/416 ITR 128 (St.)(SC)
S. 194H : Deduction at source–Commission or brokerage– Guarantee commission paid to bank is not covered under commission or brokerage–Not liable to deduct tax at source. [S. 201(1), 201(IA)]