TMI Blog2015 (12) TMI 1121X X X X Extracts X X X X X X X X Extracts X X X X ..... ITAT HYDERABAD] - Decided against revenue - ITA No. 652/JP/2013 - - - Dated:- 16-12-2015 - Shri T. R. Meena, AM And Shri Laliet Kumar, JM For the Petitioner : Shri O.P. Bhateja ( Addl. CIT) For the Respondent : Shri P.C. Parwal (CA) ORDER Per: T. R. Meena, A.M. This is an appeal filed by the revenue against the order dated 17/04/2013 passed by the learned CIT(A)-III, Jaipur for A.Y. 2011-12. The sole ground of appeal is as under:- 1 The ld CIT(A), Jaipur has erred in law and on facts holding that the assessee is not liable to make TDS U/s 194H on the credit and swap charges paid to the bankers 2. The sole ground of the appeal is against, not liable to make TDS I/s 194H on the credit and swap charges paid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. The bank provides the information of collection of the card transaction amounts on a regular basis to the merchant. All penalties, damages on the sale are to be borne by the merchant or principal. f. The bank charges commission/fee for services rendered as described in the agreement/contract between the merchant i.e. the principal and bank i.e. the agent. As per DCIT (TDS), the assessee was liable to deduct tax. Accordingly, he calculated demand U/s 201(1) and interest U/s 201(1a) of the Income Tax Act, 1961 (in short the Act) at ₹ 8,84,144/- and 1,63,961/- respectively. Thus, total demand was credited at ₹ 10,48,105/- 3. Being aggrieved by the order of the learned Assessing Officer, the assessee carried th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent to the shop keeper who sale their goods through credit card. Only in those cases where goods are found damaged and credit card holder inform the bank that the material purchased by them is damaged or defective and request the bank not to make the payment, in such cases only bank can withhold the payment, otherwise the bank has to make the payment to the shop keeper. Therefore, in our considered view, there is no such relation between the bank and the shop keeper which establishes the relationship of a Principal and Commission Agent. Technically it may be written that bank will charge certain percentage of commission but this is not a commission because assessee sells its goods against credit cards, and on presentation of bills, the bank ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Now the revenue is in appeal before us. The Ld. DR vehemently supported the order of the DCIT(TDS), Jaipur and argued that order may be confirmed. At the outset, the ld AR of the assessee has reiterated the arguments made before the ld CIT(A) and further submitted that this issue is covered by the various decisions of Hon ble ITAT, therefore order of the ld CIT(A) may please be upheld. 5. We have heard the rival contentions of both the parties and perused the material available on the record. The case laws cited by the ld CIT(A) are squarely applicable on payment of swap charges made to bank and Section 194H is applicable on demand made by the principal to the commission agent. In assessee s case, the assessee had sold the goods to the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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