TaxTMI 
TaxTMI 
TaxTMI 
2017 (5) TMI 1558
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....law, the Ld. CIT(A) erred in holding that the amount retained by a bank/credit card agency out of the sale consideration of the tickets booked through credit cards is not covered under the definition of "commission or brokerage" given in the Explanation (i) to Section 194H of the Act and the assessee hence was not liable to deduct tax at source under section 194H in respect of this amount?" 2. "Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in holding that a bank/credit card agency is not an agent of the assessee and thereby clearly ignoring the fact that in the entire process of facilitation of credit card booking and hence the bank/credit card agency is nothing but a constructive agent for the ....
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....ng officer be restored. 7. The appellant craves leave to add, amend, vary, omit or substitute any of the aforesaid grounds of appeal at any time before or at the time of hearing of the appeal. 3. Although the Revenue has raised multiple Grounds of appeal, but in effect two issues have been raised. Firstly, it is aggrieved by the action of the CIT(A) in deleting the addition of Rs. 24,64,25,637/- made by the Assessing Officer by invoking section 40(a)(ia) of the Act; secondly, it is aggrieved by the action of the CIT(A) in deleting the disallowance of Rs. 23,31,350/- made by the Assessing Officer by invoking section 14A of the Act. Both the issues are discussed hereinafter in seriatim . 4. In so far as the first issue is concerned, the As....
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.... 194H of the Act are not applicable on the above mentioned amounts retained by the banks is in the nature of discounting in consideration of immediate payment made by the banks to the assessee. However, the AO held that such a payment made for the use of the credit card, internet payment gateway to enable the assessee to collect the payments made by the customers to it for orders placed through facility by the customers to it for orders placed through facility by the said customers is squarely covered by the definition of "commission or brokerage" given in explanation (i) below the third proviso to section 194H of the The ITAT, Mumbai noted that similar issue has been considered by the Jaipur bench of the Tribunal in the case of Gems Parad....
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.... the nature of normal bank charges and not in the nature of commission/brokerage for acting on behalf of the merchant establishment. Accordingly, payments made to the banks on account of utilization of credit card facilities would be in the nature of bank charges and not in the nature of commission within the meaning of section 194H of the Act and hence no TDS is required to be deducted u/s 194H of the Act. Respectfully following the jurisdictional Mumbai ITAT decision as above, the addition made u/s 40(a)(ia) is deleted." 5. Before us, it was a common point between the parties that the issue in question is directly covered by the decision of the Mumbai Tribunal in the case of Jet Airways ( India) Ltd.(supra),which has been followed by the....
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....ade varied submissions, which, inter-alia, included an assertion that the total own noninterest bearing funds were in excess of the investments made during the year under consideration, and thus, no interest expenditure was attributable to such investments. Therefore, it was contended that no interest expenditure can be subjected to disallowance under section 14A of the Act. The CIT(A) accepted the aforesaid plea and has recorded a finding that the own non-interest bearing funds of the assessee are sufficient to cover the investment in the tax free securities , therefore, following the judgment of the Hon'ble Bombay High Court in the case of CIT v. Reliance Utilities and Power Ltd., 313 ITR 340(Bom), it has to be inferred that the inves....