Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (6) TMI 62 - AT - Income TaxLiability of deduct TDS - payments to banks on account of utilization of credit card facilities would be in the nature of bank charge and not in the nature of commission within the meaning of sec.194H - Held that:- The notification u/s.197A of the Act vide notification NO.56/2012 dated 31.12.2012 as relied by AO therefore cannot be the basis on which it can be said that the amount retained by the bank was in the nature of commission within the meaning of Sec.194-H of the Act. For the reasons given above, we confirm the order of the CIT(Appeals) on this issue and dismiss the appeals of the Revenue. Difference between the sale value of the sarees and the amount remitted by the bankers according to the Revenue, was nothing but commission and therefore the assessee ought to have deducted tax at source on the said sum u/s. 194H - CIT(A) deleted liability to tds - Held that:- CIT(Appeals) had rightly held that disallowance made by the AO was not warranted. The fact that such commission payments are routine in the line of business of assessee is not disputed by the AO. The genuineness of the payment has also not been doubted by the AO. There is no material on record to show that the amounts paid to individual taxi & auto drivers were above the threshold limit for deduction of tax at source. It is not the case of the AO that individual vouchers evidencing payments in cash, were in excess of the specified limit for deduction of tax at source. In our view, the addition has been made by the AO only on the basis of surmises and was rightly deleted by the CIT(Appeals). - Decided in favour of assessee.
|