TMI Blog2023 (5) TMI 1038X X X X Extracts X X X X X X X X Extracts X X X X ..... MEMBER AND SHRI SANDEEP SINGH KARHAIL, JUDICIAL MEMBER Assessee by : None Revenue by : Shri Ankush Kapoor ORDER PER SANDEEP SINGH KARHAIL, J.M. The present appeal has been filed by the Revenue challenging the impugned order dated 23/12/2022, passed under section 250 of the Income Tax Act, 1961 ( the Act ) by the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [ learned CIT(A) ], for the assessment year 2013-14. 2. When the present appeal was called for hearing neither anyone appeared on behalf of the assessee nor was any application seeking adjournment filed. Therefore, in view of the above, we proceed to dispose off the present appeal ex parte, qua the assessee after heari ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the profit and loss account of the assessee, it was observed that the assessee has claimed credit card charges of Rs.7,06,16,768, under the head other expenses . Accordingly, the assessee was asked to show cause as to why the disallowance under section 40(a)(ia) of the Act be not made, if TDS is not deducted as per provisions of section 194H of the Act. In response thereto, the assessee submitted that the bank is not acting on behalf of the merchant establishment in dealing with 3rd parties. It was further submitted that the payments made by credit/debit cards are more convenient means of payment, to which end, the bank and the merchant establishment have agreed to certain terms and conditions facilitating such credit card payments. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . (ITA No. 4935/Del./2015 dated 13/02/2019). Being aggrieved, the Revenue is in appeal before us. 7. We have considered the submission of the learned DR and perused the material available on record. We find that the coordinate bench of the Tribunal in assessee s own case in DCIT, Range 8(2) vs Future Retail Limited, in I.T.A. No. 5476/Mum-2013, vide order dated 05/05/2017, for the assessment year 2010-11, after following various judicial pronouncements on similar issue held that the commission paid to the credit card companies is not subject to the TDS provisions of the Act. The relevant findings of the coordinate bench, in the aforesaid decision, are as under:- Ground No. 2 to 9. Since all the above grounds raised by the reven ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... et, we find that the Assessee has correctly placed reliance on the decision of the co-ordinate bench in the case of ACIT v. Jet Airways India Ltd (146 ITD 682) wherein it was held that Payments to banks for utilization of credit card facilities are in nature of bank charges, and not commission, and therefore, no tax is deductible at source under section 194H . The Delhi High Court in the case of JDS Apparels (P.) Ltd (370 ITR 454) has held that Commission' to bank on payments received from customers who had made purchases through credit cards is not liable to TDS under section 194H of the Act. This issue has also been decided in favour of the assessee by various Tribunals in the following cases: Gems Paradise v. ACIT ..... X X X X Extracts X X X X X X X X Extracts X X X X
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