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2018 (7) TMI 2159 - AT - Income TaxDisallowance of write-off (Advances paid) - CIT(A) held that write off the aforesaid rental advance is permissible and allowed the assessee’s claim - assessee’s contention is that the said premises at Mohali was taken on lease to carry on the existing business of the assessee and therefore the payment of rental advance by it, in this regard, was in the normal course of and incidental to the conduct of its business activity - HELD THAT:- The assessee is in the business of running stores and renting out premises in this regard is part of its normal business activity. Therefore, in our considered view, the impugned transaction is intrinsically linked and identical to the assessee’s core business activity. In this view of the matter, we are of the opinion that the ld CIT(A) has rightly held that the write off of rental advance paid is in the realm of revenue expenditure and allowable as deduction. We, therefore, uphold the decision of the ld CIT(A) on this issue and consequently dismiss ground No.2 raised by Revenue. TDS u/s 194H - Disallowance of Bank Charges for nondeduction of tax at source u/s 40(a)(ia) - HELD THAT:- We find that the co-ordinate bench of this Tribunal in the case of Tata Teleservices Ltd.[2013 (1) TMI 480 - ITAT BANGALORE] has examined this issue in all its facets and concluded that the payment to banks on account of utilization of credit card facilities would be in the nature of bank charges and not in the nature of commission within the meaning of sec. 194H - DR for revenue has not brought on record any details to controvert the facts of the case, as laid out above, OR any judicial decision contrary to that cited by the assessee. In this view of the matter, we are of considered opinion that the ld CIT(A) was right in placing reliance on the cited case (Supra) and in holding that the collection charges by the bank for services rendered are in the nature of bank charges and not commission and hence was not liable for TDS thereon u/s 194H - Decided in favour of assessee.
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