TMI Blog2016 (7) TMI 18X X X X Extracts X X X X X X X X Extracts X X X X ..... inst the order dated 28.8.2014 passed by learned CIT(A)-12, Mumbai and it relates to A.Y. 2010-11. 2. Facts relating to the appeal are that the Assessing Officer raised demand u/s. 201(1) and charged interest u/s. 201(1A) of the Act on the reasoning that the assessee did not deduct tax at source from the charges paid by the assessee to the bank for using credit card facilities. Learned CIT(A) deleted the addition by following the decision rendered by the Coordinate Bench of the ITAT in the case of Jet Airways (India) Ltd. (ITA Nos. 7439, 7440 7441/Mum/2010 dated 17.7.2013). 3. Aggrieved, the Revenue filed this appeal before us. 4. We have heard the parties and perused the record. We have already noticed that learned CIT(A) has de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fter deduction of commission thereon, and thus, this is only in the nature of a post facto accounting and does not involve any payment or crediting of the account of the banks or any other account before such payment by the assessee. Considering these submission of the assessee, the CIT(A) accepted the claim of the assessee for deduction of the amount of ₹ 16,34,000 on the following reasoning- 9.8 On going through the nature of transactions, I find considerable merit in the contention of the appellant that commission paid to the credit card companies cannot be considered as falling within the purview of S.194H. Even though the definition of the term commission or brokerage used in the said section is an inclusive definition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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. The said issue was again considered by the Jaipur Bench of the Tribunal in the case of Bhandari Jewellers ITA NO. 745/JP/2011(AY- 2008-09) dated 02.02.2012 wherein it was also held that held that no 7D5 is required to be deducted on the fees charged by the bank on credit card transactions. 5.3 Further, it is significant to mention here that similar issue as to applicability of TDS provisions on credit card collection charges arose for adjudication in the appellant's own case before the ld.CIT(A)-17, Mumbai (having jurisdiction over appeals against ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , this ground of appeal of the appellant is allowed 5.4 Further, it is significant to mention here that similar issue arose for adjudication in the case of Cleartrip Travel Services Private Limited for A.Y. 2011-12 before the Id.CIT(A)-14, Mumbai (having original jurisdiction over TDS Appeals) wherein it is seen that the issue in dispute on similar set of facts has been decided in favour of that assessee. For ease of reference, the concluding paragraph of the above referred order of the learned CIT(A)-14, Mumbai is reproduced hereunder; 3.4 The facts remaining the same, respectfully following the decision of the Hon ble ITAT, cited supra, it is held that no TDS is payable on credit card charges u/s.194H. Therefore, it is hel ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
