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2015 (6) TMI 1183 - AT - Income TaxLegal and professional fee - nature of expenditure - revenue or capital expenditure - CIT(A) accepted assessee’s explanation without giving the Assessing Officer an opportunity in terms of Rule 46 of the Income Tax Rules, 1962 - HELD THAT:- CIT(A) has not violated the provisions of rule 46A of the Rules. According to the Ld. Representative, even in the past years such expenditure has been allowed as revenue expenditure and that in the current year assessment year, the AO has based his disallowance on a complete misreading of the submissions put-forth by the assessee. We find that Revenue has not specified any material or evidence relied upon by the CIT(A) which was not before the Assessing Officer and, therefore, in our opinion, the objection of the Revenue in Ground of appeal no. 2, based on Rule 46 of the Rules, is quite misconceived and the same is hereby dismissed. TDS u/s 194H - assessee has paid commission to banks on credit card transactions - Addition invoking sec 40(a)(ia). HELD THAT:- In the case of JDS Apparels P. Ltd. [2014 (11) TMI 732 - DELHI HIGH COURT] . As per the Hon’ble Delhi High Court, payment of commission to banks with regard to the processing of credit card transactions was not liable to be considered as a ‘commission’ within the meaning of section 194H. Bank does not act as an agent of the assessee while processing the credit card payments and a charge collected by the bank for such service does not amount to ‘commission’ within the meaning of section 194H. In view of the aforesaid Judgment of Hon’ble Delhi High Court in the case of JDS Apparels P. Ltd. (supra), we hereby affirm the conclusion of the CIT(A) to the effect that the impugned disallowance made by the Assessing Officer by invoking section 40(a)(ia) is unsustainable. Thus, Revenue fails on this Ground also. - Appeal of the Revenue is dismissed.
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