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TMI Blog2015 (8) TMI 111X X X X Extracts X X X X X X X X Extracts X X X X ..... ment Year 2009-10 against the order dated 22.08.2012, passed by the Ld. CIT(A)-VIII, New Delhi, contending that the Ld. CIT (A) has erred in treating the credit card charges recovered by HDFC Bank from the assessee as commission subject to TDS provisions u/s 194H of the Act, thereby wrongly sustaining the addition of Rs. 44,65,654/- made by the Assessing Officer u/s 40(a)(ia). 2. The assessee is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... quiring bank after deducting a specified percentage from the bill amount; hence, the buyers are never the debtors of the retail merchant, as the acquiring bank, after purchasing the bills, recovers the payment on its own account; that therefore, the entire risk pertaining to the payments made through credit cards rests with the acquiring bank only; and that as such, the transaction between retail ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the other hand, has placed strong reliance on the impugned order, contending that HDFC Bank Ltd., as rightly observed by the Ld. CIT (A), while making payment to the assessee, had deducted commission on the transactions; that the said commission had been paid to the bank for rendering services for the recovery of the bill amount to the assessee; that this shows that the bank was acting as an agent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd 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. 6. 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 no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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