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2017 (10) TMI 1421 - AT - Income TaxDisallowance on account of non deduction of TDS on bank charges deducted by the bank while making payment to the assessee for the goods purchased by the customers of the bank against the Debit and Credit cards issued by the bank to its customers - Held that:- As decided in CIT vs. JDS Apparels (P) Ltd. (2014 (11) TMI 732 - DELHI HIGH COURT) has held that since the bank was making the payment to the assessee after making deduction of bank charges, there was no occasion for the assessee to deduct tax at source and, further, the bank was not acting on behalf of the assessee but on the other hand was acting on behalf of the customers while processing payments through debit cards and credit cards. In the present case we further feel the said principle should be applied as HDFC would necessarily have acted as per law and it is not the case of the Revenue that the bank had not paid taxes on their income. It is not a case of loss of Revenue as such or a case where the recipient did not pay their taxes - decided against revenue. Provision for gratuity was not an ascertain liability, whereas assessee has been contending that it is an ascertain liability - Held that:- CIT (A) on facts held that in this case, the provision for gratuity is an ascertained liability and while placing reliance on the decision reported in ACIT vs. NHPC Limited decided by a coordinate bench of this Tribunal he granted the relief. Nothing contrary is established before us to show that the provision for gratuity in this case is not an ascertained liability. No ascertain liability, whether or not the payment was made in future could be added back, as such, we uphold the finding of the CIT (A) and dismissed this ground of appeal.
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