TMI Blog2016 (4) TMI 1344X X X X Extracts X X X X X X X X Extracts X X X X ..... interference. Accordingly, grounds raised by the Revenue are dismissed. - I.T.A. No.5419/M/2014, 5420/M/2014 (Assessment Year: 2011-2012) - - - Dated:- 13-4-2016 - Shri D. Karunakara Rao And Shri Ram Lal Negi, JJ. Assessee by: Shri Bhadresh Joshi Revenue by: Shri K. Ravi Kiran, DR ORDER D. Karunakara Rao, There are two appeals under consideration and they are filed by the Revenue for the AY 2011-2012. Since, the Revenue raised the identical grounds in these two appeals, therefore, for the sake of convenience, they are clubbed, heard together and disposed off in this consolidated order. Appeal wise adjudication is given in the following paragraphs of this order. 2. The grounds raised by the Revenue in appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of the bank changes collected by the bank for credit card services before remitting the net amount to the assessee. In this regard, it is the argument of the Ld Counsel for the assessee that the relationship between the bank and the assessee is not principal to agent‟ but principal to principal‟. Therefore, the provisions of section 194H of the Act are not applicable. For this proposition on the order of the Tribunal in the case of M/s. Inf ini t i Retail Limited for the AY 2009-2010 in ITA No.4461/M/2013, dated 1.5.2015 and para 2.1 of the said Tribunal‟s order is relevant in this regard. Further, Ld Counsel for the assessee also relied on the judgment of the Hon‟ble Delhi High Court in the case of CIT vs. JDS A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thereby, creating a principle and agent relationship and further in the instant case, the sale is conducted by the assessee on its own and not through the bank and further the transaction may termed as credit card MSF charges but in charges, cheque book request charges, etc. The Ld AO completed the assessment disallowing the expenditure of ₹ 5,02,36,000/- incurred on account of payment of processing charges to HDFC bank on total amount swiped through customer credit card and expenditure of ₹ 49,02,000/- on account of various other bank charges (Cash Management Services) u/s 40(a)(ia) of the Act. According to the Ld AO, tax should have been deducted at source u/s 194 of the Act. On appeal, Ld CIT (A) examined the facts and follow ..... X X X X Extracts X X X X X X X X Extracts X X X X
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