TaxTMI 
TaxTMI 
2025 (8) TMI 130
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.... CIT(A) Order Details Respondent A B C D E F 1 ITA No. 1133 / Chny / 2025 2014-15 Tamilnad Mercantile Bank Ltd, No.57, VE Road, Tuticorin Central Bus Stand, S.O, Thoothukudi, Tuticorin, Tamil Nadu-628 002. [PAN: AAACT56558K] DIN & Order No. ITBA / APL / S / 250 / 2024-25 / 1074551072(1) dated 17.03.2025 Assistant Commissioner of Income Tax, TDS Circle, Madurai. ] 2 ITA No. 1134 / Chny / 2025 2014-15 DIN & Order No. ITBA / APL / S / 250 / 2024-25 / 1074552655(1) dated 17.03.2025 3 ITA No. 1135 / Chny / 2025 2017-18 DIN & Order No. ITBA / APL / S / 250 / 2024-25 / 1074551532(1) dated 17.03.2025 All the three appeals are centering around common issue of non- de....
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....e Bank of India for borrowing money in a fully collaterized environment in as much as CCIL is the central counter party for the online platform for borrowing and repayment including interest and charges while CCIL was setup by Reserve Bank of India in identifying six core promoters comprised of banks and LIC of India. It was stated that the appellant bank is one of the members of the online platform operated by CCIL and having complied with the threshold conditions for becoming a member, the Appellant bank by virtue of the arrangement has given collateral in the form of government securities in order to participate in the said online platform for borrowing and offered surplus funds for lending for the other participating members. The Ld.AO ....
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....the CCIL, which have been duly vetted and approved by the RBI, the appellant does not have any active role in the online transactions taking place on the CCIL platform. It has been stated that responsibility rests upon the shoulder of a person as a tax deductor u/s194J, in cases where the amount of money is traveling from the deductor to the deductee. Thus it was argued that the law mandates that when a deductor makes any payment to a deductee, including by way of credit to the account of the deductee, then the deductor is required to make deduction of TDS under TDS provisions including those mandated u/s 194J. The important thing is the amount of money should travel from deductor to the deductee. It is the case of the appellant that the tr....
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....n consideration of the same we have noted that CCIL has unequivocally confirmed about the payment of taxes on clearing charges / professional charges received from its members including the appellant. 5.0 The next argument given by the appellant for non-deduction of TDS is regarding the application of notification no. 47/2016 dated 17/6 / 2016 issued by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes mandating non deduction taxes on clearing charges wherein such payments is made by a person to any payment system company authorized by the RBI. It was contended that CCIL is payment system company duly authorized by the RBI and therefore appellant is excluded from the purview of tax deduction. The Ld. DR argued....
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....by the Ld.CIT(A) to the Ld.AO regarding submission of Form-26A and consequently deleting the impugned addition is ipso facto non- maintainable. The Ld.Counsel has argued that it had requested CCIL for issuance of 26A certificate to it however, CCIL through their email communicated that the assessee may issue a 26A Certificate and file it before the department. The Ld.Counsel argued that the responsibility to issue 26A Certificate is on the deductee and not on deductor and that consequently CCIL has misplaced understanding of the matter. It was argued that to comply with the requirement of the Ld.CIT(A) it is required to be obtain a 26A Certificate from CCIL, which has been declined by them. Therefore the assessee can never get the addition ....