2016 (2) TMI 1300

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....iled its return of income on 28. 09.2011,declaring income of Rs.(-)1,37,20,956/-.The Assessing Officer(AO) completed the assessment, u/s.143(3)of the Act, on 07.10.2014,determining the income of the assessee at Rs. (-) 38,69,136/-. 2.Effective ground of Appeal is about deleting the disallowance of Rs. 2.19 Crores, u/s.40(a)(ia) of the Act on account of not deducting the TDS on Credit Card commiss....

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....013, dated 30/6/2015. In this context, the relevant portion of the order of the Tribunal dated 30/6/2015 (supra) is as under: "6. In this context, brief facts are that the Assessing Officer noticed that assessee has paid commission to banks on credit card transactions amounting to Rs. 6,34,22,030/-, without deduction of tax at source u/s 194H of the Act. The claim of the assessee was that in te....

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....as disallowed in terms of section 40(a)(ia). 7. The CIT(A) has disagreed with the Assessing Officer and on the basis of the decision of the Hyderabad Bench of the Tribunal in the case of Vah Magna Retail (P) Ltd, dated 10.04.2012, he held that the payments made to the banks for credit card services was outside the purview of deduction of tax u/s 194H and, therefore, the impugned sum could not b....

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....Ltd. (supra). As per the Hon'ble Delhi High Court, payment of commission to banks with regard to the processing of credit card transactions was not liable to be considered as a 'commission' within the meaning of section 194H of the Act. According to the Hon'ble High Court, the bank does not act as an agent of the assessee while processing the credit card payments and a charge colle....