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2014 (9) TMI 650 - AT - Income TaxNon-deduction of TDS on commission paid to banks on credit cards – Held that:- As decided in assessee’s own case for the earlier assessment year, it has been held in Income Tax Officer-(TDS) -2(1) Versus M/s Jet Airways (India) Ltd. [2013 (8) TMI 586 - ITAT MUMBAI] - the provisions of section 194H of the Act are not applicable as the banks make payments to the assessee after deducting certain fees as per the terms and conditions in the credit card and it is not a commission but a fee deducted by the banks - there is no relation between the bank and the shop keeper which establishes the relationship of a Principal and Commission Agent - provisions of section 194H are not attracted in this type of transaction - addition made and confirmed by CIT (A) was not justified - the payments made to the 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 section 194H of the Act and no TDS is required to be deducted u/s 194 H of the Act – Decided against revenue. Short deduction of TDS on Passenger Service Fees – Order u/s 201(1) and 201(1A) – Held that:- It is a statutory liability for every licensee to collect PSF - Since it is a statutory liability and the meaning given by the statute has to be considered and in this case the Indian Aircraft Rules, 1937 has used the term "Fees", therefore, same meaning has to be given while considering the PSF - the assessee is only acting as a conduit between the embarking passengers and the Central Government agency - the assessee only collects the PSF from the passengers for and on behalf of the airport authority/operator and passes the same to the airport authority/operator - The CBDT, thus, clarified that the customer is also not given any right to use any demarcated space/place or the machinery of the cold storage and thus does not become a tenant - the provisions of 194-I is not applicable to the cooling charges paid by the customers of the cold storage - the PSF charges paid by the assessee on behalf of its customers, do not attract the provisions of Section 194-I of the Act - the order of the CIT(A) is upheld – Decided against revenue.
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