2020 (12) TMI 529

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.... 2011-12. The appeal is admitted on the following substantial questions of law: (i) Whether on the facts and in the circumstances of the case, the tribunal was correct in holding that depreciation on valuation of investment portfolio is allowable by treating the investments held by the assessee bank as stock-in-trade once the RBI Master Circular read with CBDT Circular No.665 came into force?   (ii) Whether on the facts and in the circumstances of the case, the Tribunal erred in deleting the expenditure relating to earning of exempted income ignoring the provisions of Section 14A(1) of the Income Tax Act read with Rule 8D? (iii) Whether on the facts and in the circumstances of the case, the Tribunal erred in holding that on the....

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.... the revenue. In the aforesaid factual background, this appeal has been filed.   4. Learned counsel for the assessee submitted that the first and second substantial questions of law involved in this appeal have been answered in favour of the assessee by division bench decision of this court in 'KARANTAKA BANK LTD. VS. ASSISTANT COMMISSIONER OF INCOME-TAX', CIRCLE-2(1), (2013) 34 TAXMANN.COM 150 (KAR), decision of the Supreme Court in 'MAXOPP INVESTMENT LTD. VS. COMMISSIONER OF INCOME TAX, NEW DELHI', (2018) 19 TAXMANN.COM 154 (SC) and judgment dated 17.01.2020 passed by this court in I.T.A.No.97/2010 respectively. The aforesaid assertion made by learned counsel for the assessee could not be disputed by learned counsel ....

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....ng an individual or a Hindu undivided family, who is responsible for paying, on or after the 1st day of October, 1991 , 3 but before the 1st day of June, 1992 ] to a resident, any income by way of commission (not being insurance commission referred to in section 194D) or brokerage, shall, at the time of credit of such income to the account of the payee or at the time of payment of such income in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, deduct income- tax thereon at the rate of ten per cent. (2) The provisions of sub-section (1) shall not apply- (a) to such persons or class or classes of persons as the Central Government may, having regard to the extent of inconvenience caused or likely to b....

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....his section shall apply accordingly. Thus, from perusal of Section 194H it is evident that the provision would apply if the payment was received or is receivable directly or indirectly by a person acting on behalf of another person for services rendered not being professional and for any services in the course of buying and selling of goods or in relation to any transaction relating to an asset, valuable article or thing. 7. Now we may advert to the facts of the case in hand. In case the credit card issued by the assessee was used on the swiping machine of another bank, the customer whose credit card was used got access to internet gateway of acquiring bank resulting in realization of the payment. Subsequently, the acquiring bank reali....