DCIT, CIRCLE-1(1)(1), SURAT vs. AKANSHA SHIP BREAKING PVT. LTD, SURAT

In the result, appeal filed by the Revenue is dismissed

Bench: Shri Pawan Singh, Jm & Dr. A. L. Saini, Am आयकरअपीलसं./Ita No.112/Srt/2020 ("नधा"रणवष" / Assessment Years: (2010-11) (Virtual Court Hearing) The Dcit, Circle-1(1)(1), Vs. Akansha Ship Breaking Pvt. Ltd., 1St Floor, Dhamanwal Complex, Opp. Surat. Rajkumar Theater, Udhna, Surat. "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aacca2307F (Assessee) (Respondent) Assessee By : Shri Rohit Vijayvargia, Ca Revenue By : Shri Sita Ram Meena, Sr. Dr सुनवाईक"तार"ख/ Date Of Hearing : 11/02/2022 घोषणाक"तार"ख/Date Of Pronouncement : 28/02/2022 आदेश / O R D E R Per Dr. A. L. Saini: Captioned Appeal Filed By The Revenue, Pertaining To Assessment Year (Ay) 2010-11, Is Directed Against The Order Passed By The Learned Commissioner Of Income Tax (Appeals)-1, [In Short “The Ld. Cit(A)”] In Appeal No. Cit(A), Surat-1/10577/2016-17 Dated 14.02.2020, Which In Turn Arises Out Of An Assessment Order Passed By The Assessing Officer Under Section 143 R.W.S. 147 Of The Income Tax Act, 1961 [Hereinafter Referred To As The “Act”], Dated 28.03.2016. 2. Grounds Of Appeal Raised By The Revenue Are As Follows: “1. Whether On The Facts & In The Circumstances Of The Case & In Law, The Learned Cit(A) Is Justified In Deleting The Disallowance Of Rs.39,52,119/- Made Under Section 40(A)(Ia) Of The It Act On Account Of Non-Deduction Of Tds, According To The Provisions Of Section 194H Of The Act, On Bank Guarantee Commission Charged By The Bank On Behalf Of Assessee For The Line Of Credit Facility Extended By It, Holding That The Payment Made To The Bank In The Nature Of Commission For Extending The Line Of Credit Facility Is Not In The Nature Of Commission & Therefore The Provisions Of Section 194H Are Not Applicable To Such Payments, Without Appreciating That In The Assessee'S Case The Bank Charge Has The Character Of Commission?