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2022 (11) TMI 304 - ITAT BANGALORETDS u/s 194H - credit card commission under the head ‘commission, brokerage and discounts’ - Addition u/s 40(a)(ia) for non deduction of tds - HELD THAT:- We observe that the similar issue regarding credit card commission has been decided in assessee’s own case in the assessment year 2010-11 [2015 (11) TMI 1880 - ITAT BANGALORE] decided in favour of the assessee as held that such payments were more in the nature of bank charges than in the nature of commission and Section 194H of the Act would not be attracted. - Decided in favour of assessee. Disallowance u/s 14A - HELD THAT:- There is nothing on record to suggest that the assessee has not earned any exempt income for the relevant assessment year. For the limited purpose of examination of the same, the matter is restored to the files of the AO. AO on examination finds that there is no exempt income earned during the relevant assessment year, there shall be no disallowance u/s 14A of the IT Act. The AO shall decide the issue as per law laid down by the Era Infrastructure India Ltd., [2022 (7) TMI 1093 - DELHI HIGH COURT] Nature of expenditure - revenue expenditure claimed by the assessee whereas it is in the nature of capital in nature - assessee could not prove that it is a revenue expenditure - HELD THAT:- We observe that the AO has observed that the assessee itself has capitalized in the financial statements to the expenditure incurred but the assessee has claimed it as a revenue expenditure and the assessee also could not justify that this expenditure is in the nature of revenue expenditure before us. Therefore, the AO has rightly treated it as capital expenditure after observing the submissions of the assessee that the salary paid towards the expansion activities in Hyderabad, the capital expenditiure incurred by the assessee is not allowable u/s 37(1) of the Act. Therefore, we uphold the order of the AO and reverse the order of the CIT(A). Allowability of processing fees and interest paid by the assessee on the loan taken - HELD THAT:- No infirmity in the order of the CIT(A) and this issue is also covered by the judgment of Hon’ble Supreme Court in the case of Vardhman Polytex Ltd. Vs. CIT [2012 (9) TMI 519 - SC ORDER] in favour of the assessee. Therefore, we dismiss this ground of the Revenue.
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