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2022 (6) TMI 885 - AT - Income TaxTDS u/s 194H - Non deduction of tds on Credit card commission under section 40(a)(ia) - as argued by assessee commission is unilaterally retained by the credit card company. It cannot be said that bank acts on behalf of the merchant establishment or that merchant establishment conducts the transaction for the bank - HELD THAT:- .In view of the judgment in the case JDS Apparels Pvt. Ltd. [2014 (11) TMI 732 - DELHI HIGH COURT] the artificial distinction between charges attributable to foreign banks (American Express Bank herein) vis-à-vis. bank situated in India, in our view, is not justified. Such differentiation made in the press release dated 04.01.2013 is not borne out by judicial pronouncements. In consonance with the judicial precedents, the Ground No. 1 is allowed. Disallowance on account of staff recruitment expenses - AO disallowed the recruitment expenses on the ground that no TDS was deducted for such payments - It is the case of the assessee that the aforesaid payments is an aggregate sum incurred during the year and individual payments to different persons are very small generally ranging between Rs. 1500 to Rs. 7500/- per person - HELD THAT:- On perusal thereof, we find merit in the plea of the assessee for non deduction of TDS on such payments below threshold limit provided under Section 194C of the Act. - Decided in favour of assessee. TDS u/s 194J - Disallowance on account of legal charges - as contended on behalf of the assessee that such payments are made primarily towards stamp duty and registration charges of various lease deeds of stores during the Financial Year 2012-13 - As stated, the assessee has shared 50% of such expenses - HELD THAT:- The expenses incurred not being in the nature of professional services but towards payment of government duty/fee/documentation charges, we see merit in the plea of the assessee for non deduction of TDS under Section 194J. Ground No. 3 is thus allowed.
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