Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (3) TMI 278 - AT - Income TaxTDS u/s 194J - payment of Passenger Service Fee (PSF) to the Airport Operators - considering the nature of PSF - income u/s 2(24) - HELD THAT:- As is clear from the findings recorded in case of Jet Airways (2017 (1) TMI 899 - BOMBAY HIGH COURT) PSF cannot be considered to be a payment made by the assessee airline. PSF is a payment made by the passenger which is only routed through the assessee airline. As undisputed that the amount handed over by the assessee airline to the Airport Operators has also not been claimed as expenditure by the assessee in its books of account. PSF is a statutory levy and the assessee airline is only acting as a conduit between the embarking passengers and the Central Government Agency. Clearly therefore, even the provisions of section 194J of the Act would not apply. Respectfully following decision of Jet Airways (supra) it is held that assessee was not required to deduct TDS u/s 194J on payment of PSF. DR has relied on the CBDT Office Memorandum dated 30th June, 2008. CBDT in its office Memorandum has opined that PSF is an income which is chargeable to tax in the hands of relevant Airport Authority. Tribunal in the case of Mumbai International Airport Pvt. Ltd.[2017 (2) TMI 640 - ITAT MUMBAI] held that PSF is not an income u/s 2(24) in hands of the relevant Airport Operator. The Coordinate Bench has further held that the CBDT Office Memorandum is not binding on the Tribunal and the same cannot override the provisions of the Act. - Decided in favour of assessee TDS u/s 194H - commissioner or brokerage - amount retained by Banks/ Credit Card Agencies out of Sale consideration of the tickets booked through credit / debit cards - AO held that there is an implied agency relationship between the assessee airline and the banks - HELD THAT:- We find that the issue in dispute stands fully covered by the decision in the case of JDS Apparel [2014 (11) TMI 732 - DELHI HIGH COURT] it is held that the assessee was not required to deduct TDS on charges retained by Bank / credit card agencies out of the sale consideration of tickets booked through credit / debit cards. It is held that provision of section 194H are not attracted. - Decided in favour of assessee.
|