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2013 (5) TMI 220 - AT - Income TaxTax free payments - TDS liability born by the assessee - the TDS, as exigible on payments, is grossed up, and payment made accordingly - Held that:- In terms of the agreement entered by with the International Credit Card Agencies, i.e., VISA and Master Card, the assessee is also to bear the tax on the payments made thereto. Accordingly, the TDS, as exigible on payments, is grossed up, and payment made accordingly, there is no merit in the argument that tax-free payments could not be allowed or, alternatively, the assessee would not be entitled to deduction in respect of the tax liability of the payee - FAA has allowed relief to the assessee following the decision of CIT vs. Standard Polygraph Machines Pvt. Ltd. [1998 (11) TMI 49 - MADRAS High Court]. As this is a recurring feature in the assessee's case there is no merit in the Revenue's argument that the assessee had not supplied it with the copy of the relevant agreements. Against revenue. Claim for bad debt - Held that:- No merit in the Revenue's case that the assessee, being a NBFC, is not in the business of money lending, so that the provision of section 36(2) is not satisfied. See T.R.F. Ltd. vs. CIT [2010 (2) TMI 211 - SUPREME COURT] and CIT vs. Star Chemicals (Bombay) P. Ltd. [2008 (2) TMI 399 - BOMBAY HIGH COURT] among others, so that the matter ought to be considered as settled. Against revenue.
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