TaxTMI 
TaxTMI 
TaxTMI 
2014 (9) TMI 650
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....spectively, decided in ITA Nos.7439, 7440 & 7441/Mum/2010, vide order dated 17-7-2013. 4. During the course of the proceedings under Section 201(1)/201(1A) of the Act, the AO noticed that the assessee has not deducted tax at source under Section 194H on account of commission from the retained amount of commission by the credit card companies/banks. This issue has been discussed by the AO in para 6 at page 6 of his order and in clause (g) at page7 , The AO has computed the amount of TDS and interest payable thereon and made an addition of Rs. 48,45,64,490/-. 5. In appeal, the CIT(A) has considered the grievance of the assessee in para 5 at page 18 of his order while disposing off the grounds No.4, 5 & 6, raised before him and in para 5.12 at page 28, the CIT(A) has followed the decision of his predecessor in earlier years as mentioned by us at the very beginning of this order. The findings of the CIT(A) in earlier years, are covered by the decision of the Tribunal decided in ITA Nos.7439, 7440 & 7441/Mum/2010 (supra). A perusal of the said consolidated order of the Tribunal shows that on identical facts the Tribunal has considered the decisions of the coordinate Benches of Jaipur ....
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....holder inform the bank that the material purchased by them is damaged or defective and request the bank not to make the payment, in such cases only bank can withhold the payment, otherwise the bank has to make the payment to the shop keeper. Therefore, in our considered view, there is no such relation between the bank and the shop keeper which establishes the relationship of a Principal and Commission Agent. Technically it may be written that bank will charge certain percentage of commission but this is not a commission because assessee sells its goods against credit cards, and on presentation of bills, the bank has to make the payment. It is not the case that bank has advised the assessee to sell their goods to its customers then he will pay the commission. It is reversed in a situation as bank issued credit cards to the credit card holders on certain fees or whatever the case may be and the card holder purchases material from the market through his credit card without making any payment and that shop keeper presents the bill to the bank against whose credit card the goods were sold and on presentation of bill as stated above the bank makes the payment. Therefore, in our considere....
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....34,000 on the following reasoning : "9.8 On going through the nature of transactions, I find considerable merit in the contention of the appellant that commission paid to the credit card companies cannot be considered as falling with in the purview of S.194H. Even though the definition of the term "commission or brokerage" used in the said section is an inclusive definition, it is clear that the liability to make TDS under the said section arises only when a person acts on behalf of another person. In the case of commission retained by the credit card companies however, it cannot be said that the bank acts on behalf of the merchant establishment or that even the merchant establishment conducts the transaction for the bank. The sale made on the basis of a credit card is clearly a transaction of the merchants establishment only and the credit card company only facilitates the electronic payment, for a certain charge. The commission retained by the credit card company is therefore in the nature of normal bank charges and not in the nature of commission/brokerage for acting on behalf of the merchant e....
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.... components i.e. the security component @ 65% to the designated security agency for providing security services to the passenger and facilitation @ 35% to private passengers facilitation services by the Airport Operators. The main contention of the assessee was that it is only collecting the PSF from the passengers on behalf of the Airport Operators and has paid to the Airport Operators. The assessee has not claimed such payment as expenses in its books of accounts. Therefore, there is no liability of TDS under Section 194I of the Act. The AO did not consider this submission of the assessee and computed the TDS deductible under Section194I of the Act at Rs. 34,40,25,497/- and computed interest under Section 201(1A) of the Act at Rs. 239,54,04,894/-. 9. The assessee carried the matter before the CIT(A) and reiterated its stand that it is only collecting the PSF for and on behalf of the Airport Authorities and paying the same to the Airport Authorities without charging the same to its profit and loss account. It was strongly contended before the CIT(A) that the PSF does not come under the definition on rent as provided under Section194-I of the Act. After considering the facts and t....
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.... services" A perusal of the aforementioned rule clearly shows that it is a statutory liability for every licensee to collect PSF. Since it is a statutory liability and the meaning given by the statute has to be considered and in this case the Indian Aircraft Rules, 1937 has used the term "Fees", therefore, same meaning has to be given while considering the PSF. It is not in dispute that the assessee is only acting as a conduit between the embarking passengers and the Central Government agency. This view is also fortified by the fact that out of Rs. 200/-, Rs. 130/- is the security component, which is deposited in a separate escrow account, which is operated and can be utilized by airport concerned only to meet the security related expenses of that airport. 13. Further it is pertinent to note that the CBDT in its Office Memorandum dated 30-06-2008 has clearly stated the fact that the licensee of the airport i.e. the airport operator, is required to collect the PSF is initially collected by the concerning airlines from the passengers and then handed over to the respective airport operator/authority. Thus, it is absolutely clear that the assessee only collects the PSF from the passe....