TMI Blog2012 (2) TMI 543X X X X Extracts X X X X X X X X Extracts X X X X ..... 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, provisions of section 194H are not attracted in this type of transaction. Therefore, we hold that addition made and confirmed by ld. CIT (A) was not justified. See case of M/s. Gem Paradise [2012 (2) TMI 521 - ITAT JAIPUR ] - Decided in favour of assessee. - ITA No. 745/JP/2011, ITA No. 837/JP/2011 - - - Dated:- 2-2-2012 - N. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned credit slip is sent to the bank for collection. The bank after deducting certain amount named as service fees/discount/merchant discount rate (MDR)/commission makes the payment to the assessee. During the year the amount of service charge retained by different banks in respect of credit card slips sent to the bank for collection is as under:- Name of the Bank Amount American Express Bank 23,41,197/- HSBC Bank 8,12,258/- Andhra Bank 24,04,429/- Axix Bank 4,744/- ICICI Bank 5,41,487/- CITI B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of assessee. However, she deleted the addition made by the AO in respect of service charges paid to American Express Bank, HSBC Axis Bank on account of the general no deduction certificate issued to them by the Income Tax Department but confirmed the addition in respect of payment to Andhra Bank, ICICI Bank CITI Bank for ₹ 30,97,998/-. 5. Detailed written submissions have been filed here before the Tribunal on behalf of the assessee. 6. On the other hand, the ld. D/R has also filed a brief written note. The ld. D/R has also filed certain circular in respect of higher value transactions, observations of Hon ble Supreme Court in case of Essar Oil. It was also submitted that there was no direct decision available on the issue. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bank i.e. issuance of credit cards. Bank issues credit card to the various customers who purchase the various credit cards on the agreed terms and conditions. One of the major condition is that if credit card holder does not make payment within the prescribed time limit then they charge 2% penal amount of bill which is raised by the shop keeper against sale of its items through credit card. Bank cannot refuse the payment 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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