Case Law Details
The issue is as to whether the payment in question can be termed as commission paid for rendering services by the bank to the assessee for the recovery of the bill amount and so, whether TDS was deductible thereon u/s 194H and whether non-compliance thereof has rightly resulted in the addition of the amount u/s 40(a)(ia) of the Act.
The matter stands squarely covered by ‘Jet Airways (India) Ltd.’ (supra), wherein it has been held, under similar circumstances that payments to banks for utilization of credit card facilities are in the nature of bank charges and not commission and, therefore, no tax is deductible at source u/s 194H. No decision to the contrary has been brought to our notice by the department. Now, once no tax is deductible at source u/s 194H of the Act on the payment made to bank for utilization of credit card facility and such payment is in the nature of bank charges, obviously, the provisions of Section 40(a)(ia) of the Act do not get attracted.
INCOME TAX APPELLATE TRIBUNAL, DELHI
ITA No. 5467/Del/2012- Assessment Year: 2009-10
JDS Apparels Ltd. Vs. ACIT
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