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TMI Blog2015 (12) TMI 1121X X X X Extracts X X X X X X X X Extracts X X X X ..... ankers" 2. The sole ground of the appeal is against, not liable to make TDS I/s 194H on the credit and swap charges paid to the bankers. The ld DCIT, (TDS), Jaipur had verified the assessee's case and found that the assessee had deducted TDS amounting to Rs. 70,65,622/- but had not deposited it in government exchequer. The TDS amount was pertaining to F.Y. 2011- 12. The assessee after knowing the consequences of non deposition of TDS, deposited the amount by various challans in F.Y. 2011-12. The ld DCIT found that the assessee had paid commission to bank in F.Y. 2010-11 at Rs. 66,49,221/-. As per DCIT (TDS), it was a commission/charges paid to the bank for availing credit card facilities. He gave reasonable opportunity of being heard to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eing aggrieved by the order of the learned Assessing Officer, the assessee carried the matter before the learned CIT(A), who had allowed the appeal by observing as under:- "02.03 On due consideration of the order of the Hon'ble ITAT, Jaipur in the case of M/s Gems Paradise (supra), I hold that the issue is squarely covered in favour of the appellant. The findings of the Hon'ble Tribunal in para 27 of its order is reproduced here under:- 27. After considering the orders of the AO and ld. CIT (A), we find that assessee deserves to succeed in this regard. Section 194H is applicable where any commission has been paid by the Principal to the commission agent. This is not a case of commission agent as assessee sold its goods through credit c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see sells its goods against credit cards, and on presentation of bills, the bank has to make the payment. It is not the case that bank has advised the assessee to sell their goods to its customers then he will pay the commission. It is reversed in a situation as bank issued credit cards to the credit card holders on certain fees or whatever the case may be and the card holder purchases material from the market through his credit card without making any payment and that shop keeper presents the bill to the bank against whose credit card the goods were sold and on presentation of bill as stated above the bank makes the payment. Therefore, in our considered view, provisions of section 194H are not attracted in this type of transaction. Therefo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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