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2017 (5) TMI 1558 - AT - Income TaxTDS u/s 194H - commission or brokerage - tds liability on amount retained by a bank/credit card agency out of the sale consideration of the tickets booked through credit cards - Held that:- In the case of Jet Airways(India) Ltd. (2013 (8) TMI 586 - ITAT MUMBAI) has concluded that credit card charges paid to the collecting banks would not fall within the meaning of the expressions ‘commission or brokerage’ as understood for the purposes of section 194H of the Act, therefore, no amount of tax is deductible at source on such payments under section 194H of the Act. We hereby affirm the decision of the CIT(A) in deleting the impugned addition. - Decided against revenue Disallowance made u/s 14A worked out by the Assessing Officer by applying Rule 8D(2) for the interest expenses - Held that:- The rationale explained in the case of Reliance Utilities & Power Ltd. (2009 (1) TMI 4 - BOMBAY HIGH COURT) by the Hon'ble Bombay High Court is attracted and it is to be presumed that the interest expenditure is not relatable to such investments. Such presumption has also been held to be applicable in the context of section 14A of the Act by the Hon'ble Bombay High Court in the case of CIT vs. HDFC Bank Ltd.,(2014 (8) TMI 119 - BOMBAY HIGH COURT) and in the case of HDFC Bank Ltd. vs. DCIT(2016 (3) TMI 755 - BOMBAY HIGH COURT). Therefore, we affirm the order of the CIT(A) deleting the disallowance made by the Assessing Officer under section 14A of the Act out of the interest expenditure. - Decided in favour of assessee.
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