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2019 (5) TMI 117 - HC - Income TaxTDS u/s 194H - commission paid to the banks on processing of Credit Card Transactions - TDS liability - HELD THAT:- As relying on M/S. HOTEL LEELA VENTURE LTD., [2018 (12) TMI 1637 - BOMBAY HIGH COURT] The so called bank guarantee commission is not in the nature of commission paid to an agent but it is in the nature of bank charges for providing one of the banking service. The requirement of Section 194H of the Act, therefore, would not arise. - Decided in favour of assessee. Tds u/s 194I or 194C - use of lounge premises paid by the assessee - payments for contract of work under section 194C OR nature of rent as per section 194I - HELD THAT:- Assessee would enter into an agreement with the agency which has rented out the lounge space at the Airport from the Airport Authority. Under such agreement, the assessee would pay committed charges be it on lumpsum basis or on the basis of customer flow to such agency. This in turn would enable the passengers of the Airlines to utilize the lounge facilities while in transit. We accept the suggestion of Mr.A.R. Malhotra appearing for the revenue that service of providing beverages and refreshments was not the dominant part of service. It may only be incidental to providing quiet, comfortable and clean place for customers to spend some spare time. We do not descreen element of rent being paid by the assessee to the agency. The assessee did not rent out the premises. The assessee did not have exclusive use to the lounge for its customers. The customers of the Airlines along with customers of other Airlines of specified categories, would be allowed to use all such facilities. Section 194I governs the situation where a person is responsible for paying any rent. In such a situation deduction of tax at source while making such payment is obligated. We do not find that the revenue is correct in invoking section 194I of the Act. - Decided against revenue.
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