TMI Blog2019 (2) TMI 985X X X X Extracts X X X X X X X X Extracts X X X X ..... d only to the extent of dividend income. AO to restrict the disallowance u/s 14A to ₹ 674/- in the facts and circumstances of the instant case. Accordingly, ground no. 1(b) raised by the assessee is allowed for statistical purposes. TDS u/s 194H - Disallowance u/s 40a(ia) in respect of credit card swiping charges paid to the bank treating the same as commission - Held that:- The monies paid by the assessee to the bank are nothing in the form of bank charges and similar to bank rendering services to the assessee for opening letters of credit, bill discounting, issuing DDs etc.. Merely because the bank collects the money from customer for providing credit card services and retains its charges and passes on net amount to the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aganesh, AM For the Appellant : Shri Srikumar Banerjee, FCA For the Respondent : Shri Robin Chowdhury, Addl. CIT Sr. DR ORDER PER M.BALAGANESH, AM 1. This appeal by the Assessee arises out of the order of the Learned Principal Commissioner of Income Tax-2, Kolkata [in short the ld CIT] in Appeal No. 49/CIT(A)-2/16-17 dated 01.07.2016 against the order passed by ACIT, Range-8, Kolkata [ in short the ld AO] under section 143(3) of the Income Tax Act, 1961 (in short the Act ) dated 29.03.2014 for the Assessment Year 2011-12. 2. Ground no. 1(a) raised by the assessee is general in nature and does not require any specific adjudication. 3. Ground no. 1(b) is with regard to action of the ld. CIT(A) confirming the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e find this aspect has been settled recently by the Hon ble Supreme Court in the case of Maxopp Investments against the assessee reported in 402 ITR 640. However, at the outset, we find that the assessee had earned exempt income in the form of dividend only to the extent of ₹ 674.40/-. Hence the disallowance u/s 14A of the Act could be restricted only to the extent of dividend income. Reliance in this regard is placed on the decision of Hon ble Delhi High Court in the case of Joint Investments Pvt. Ltd. vs. CIT reported in 372 ITR 694 wherein it was held as under: 9. In the present case, the AO has not firstly disclosed why the appellant/assessee's claim for attributing ₹ 2,97,440 as a disallowance under s. 14A had t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ia) of the Act in respect of credit card swiping charges paid to the bank treating the same as commission. 5.1. The amount was paid to the bank towards credit card swiping charges because the bank collect the money from the customers and retained a portion of the same towards its bank charges and passed on the net amount to the assessee company. It was pleaded that the assessee company has not paid any commission to the bank against the credit card facilities. The bank has given services against the credit card like any other services given by it such as opening of letters of credit, issuance of drafts or bankers cheques etc against which the bank generally charges certain amount which are commonly known as bank charges . Both the lower ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee was stated to be not pressed at the time of hearing. The same is reckoned as a statement from Bar and accordingly dismissed as not pressed. 7. Ground no. 4 raised by the assessee is with regard to action of the ld. CIT(A) confirming the addition of ₹ 4,34,194/- on account of interest income as per ITS details. 7.1. The assessee pleaded that the assessee had not received any interest income in the sum of ₹ 4,34,194/- representing interest on IT refund for assessment year 2009-10 u/s 244A of the Act. The ld. AO observed that the assessee was paid interest u/s 244A of ₹ 4,34,194/- on 24.02.2011. Since the said sum was not offered to tax by the assessee the ld.AO sought to tax the same while completing the assessment. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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