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2015 (8) TMI 111 - AT - Income TaxTDS provisions u/s 194H - credit card charges recovered by HDFC Bank from the assessee as commission - Disallowance u/s 40(a)(ia) - Held that:- The matter stands squarely covered by ‘Jet Airways (India) Ltd.’ (2013 (8) TMI 586 - ITAT MUMBAI ), wherein it has been held, under similar circumstances that payments to banks for utilization of credit card facilities are in the nature of bank charges and not commission and, therefore, no tax is deductible at source u/s 194H. No decision to the contrary has been brought to our notice by the department. Now, once no tax is deductible at source u/s 194H of the Act on the payment made to bank for utilization of credit card facility and such payment is in the nature of bank charges, obviously, the provisions of Section 40(a)(ia) of the Act do not get attracted. That being so, the addition, being unsustainable in law, is hereby deleted. - Decided in favour of assessee.
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