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TMI Blog2020 (10) TMI 81X X X X Extracts X X X X X X X X Extracts X X X X ..... held that the sale made on the basis of a credit card is the transaction of the merchant establishment and that the credit company only facilitates the electronic payment for a certain charge and the commission retained by the credit card company is therefore in the nature of normal banking charges and not in the nature of commission/brokerage for acting on behalf of the merchant establishment. DR has not been able to rebut the decisions of the Tribunal with any decision of the appellate forums to the contrary - No reason to interfere with the order of CIT(A) in deleting the disallowance made by the AO u/s 40(a)(ia) - also noticed that the Gateways have offered the income to tax in their hands in their respective returns of income. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CASS. During the course of assessment proceedings u/s 143(3) of the IT Act, the AO observed that the assessee had debited ₹ 6,35,90,429/- under the head payment to Gateways . The assessee vide its letter dated 08/09/2017 explained the same and as to why TDS was not deducted from the said payments. It was submitted that ₹ 6,35,90,429/- represents aggregate of the service charges retained by the Gateways from the amounts paid by the customers for enabling them to play online games in the portal of the company. He submitted that the terms and conditions under which the Gateway has rendered services to the customers were invariably recorded in the agreements between the company and the respective Gateways, which establish that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee relied upon the order of CIT(A) and submitted that the assessee hosts online games and when the customers make payments through banking Gateways by way of credit or debit card of the relevant banks ( which are referred to as Gateways) and while transferring money to the assessee s account, banks invariably retain service charges. It is submitted that service charges collected by the Banks/Gateways cannot be considered as commission paid by the assessee and, therefore, provisions of section 194H are not applicable. He submitted that the CIT(A), in assessee s own case for AY 2013-14 and 2014-15, had considered the issue at length and had held that provisions of section 194H are not applicable and the decision in the said years ha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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