Case Law Details
Airport Retail P. Ltd. Vs DCIT (ITAT Mumbai)
Conclusion: Payments towards bank charges for credit card payments were not liable for TDS under section 194H as the same was not a commission.
Held: Assessee had made payments towards bank charges for credit card payments . AO made the additions as assessee made payment without deduction of income-tax at source(TDS) u/s 194H by invoking provisions of Section 40(a)(ia). It was held provisions of section 194H were not applicable as the bank made payments to assessee after deducting certain fees and it was not a commission. Thus, no dis allowance under section 40(a)(ia) could be made in respect of payments made to bank towards credit card charges.
FULL TEXT OF THE ITAT JUDGMENT
This appeal, filed by assessee, being ITA No. 4816/Mum/2015, is directed against appellate order dated 30.03.2015 passed by learned Commissioner of Income Tax (Appeals)-55, Mumbai (hereinafter called “the CIT(A)”), for assessment year 2010-11, the appellate proceedings had arisen before learned CIT(A) from the assessment order dated 04.03.2014 passed by learned Assessing Officer (hereinafter called “the AO”) u/s 143(3) r.w.s. 144C(3)(a) of the Income-tax Act, 1961 (hereinafter called “the Act”) for AY 2010-11, which assessment order was passed by the AO in pursuant to the order dated 15.01.2014 passed by learned Transfer Pricing Officer(hereinafter called the “the TPO”) u/s 92CA(3) of the 1961 Act.
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