2019 (4) TMI 2127

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.... well as in law, the ld.CIT(A) has erred in holding that Passenger Service Fee (PSF) paid by the appellant on behalf of its customers does not attract the provisions of Section 194J of the IT Act, 1961 whereas, the Clarification dated 30-06-2008 issued by the CBDT clearly states that the receipts on account of PSF (Security Component) are taxable as income in the hands of the Airport Operators and it shall be the responsibility of the Airport Operators to account for the Tax Deducted at Source, if any, by the Airlines from the payments on account of PSF. 2. On the facts and in the circumstances of the case as well as in law, the ld.CIT(A) has erred in holding that the amounts retained by various banks for credit card commission do ....

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....Operators has also not been claimed as expenditure by the asssesee in its books of account. The Hon'ble Bombay High Court has further held that PSF is a statutory levy and the assessee airline is only acting as a conduit between the embarking passengers and the Central Government Agency. Clearly therefore, even the provisions of section 194J of the Act would not apply. Respectfully following decision of Jet Airways (supra) it is held that assessee was not required to deduct TDS u/s 194J on payment of PSF." 4. Respectfully following the above decision of ITAT in assessee's own case, we uphold the order of learned CIT(A) on this point and reject ground No.1 of the Revenue's appeal. 5. With regard to ground No.2, the ITAT held as under :....

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....ociated with buying or selling of goods as such. Upon swiping the card, the bank made payment of the bill amount to the respondent-assessee. Thus, the respondent assessee received the sale consideration. In turn, the bank in question had to collect the amount from the bankers of the credit card holder. The Bank had taken the risk and also remained out of pocket for sometime as there would be a time gap between the date of payment and recovery of the amount paid. 16. The amount retained by the bank is a fee charged by them for having rendered the banking services and cannot be treated as a commission or brokerage paid in course of use of any services by a person acting on behalf of another for buying or selling of goods. The intenti....