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TMI Blog2020 (12) TMI 529X X X X Extracts X X X X X X X X Extracts X X X X ..... ARNATAKA HIGH COURT ] decision of the Supreme Court in MAXOPP INVESTMENT LTD. [ 2018 (3) TMI 805 - SUPREME COURT ] and judgment [ 2020 (1) TMI 1141 - KARNATAKA HIGH COURT ] respectively. The aforesaid assertion made by learned counsel for the assessee could not be disputed by learned counsel for the revenue. For the reasons assigned in the aforesaid judgments, the first and second substantial questions of law are answered against the revenue and in favour of the assessee. TDS u/s 194H - payment made towards the service charges rendered by M/s. NFS - HELD THAT:- In case the credit card issued by the assessee was used on the swiping machine of another bank, the customer whose credit card was used got access to internet gateway of acquiring ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtfolio is allowable by treating the investments held by the assessee bank as stock-in-trade once the RBI Master Circular read with CBDT Circular No.665 came into force? (ii) Whether on the facts and in the circumstances of the case, the Tribunal erred in deleting the expenditure relating to earning of exempted income ignoring the provisions of Section 14A(1) of the Income Tax Act read with Rule 8D? (iii) Whether on the facts and in the circumstances of the case, the Tribunal erred in holding that on the payment made towards the service charges rendered by M/s. NFS is nether commission nor brokerage which does not attract TDS under section 194H of the Income Tax Act? 2. Facts leading to filing of this appeal briefly stated are that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wered in favour of the assessee by division bench decision of this court in 'KARANTAKA BANK LTD. VS. ASSISTANT COMMISSIONER OF INCOME-TAX', CIRCLE-2(1), (2013) 34 TAXMANN.COM 150 (KAR), decision of the Supreme Court in 'MAXOPP INVESTMENT LTD. VS. COMMISSIONER OF INCOME TAX, NEW DELHI', (2018) 19 TAXMANN.COM 154 (SC) and judgment dated 17.01.2020 passed by this court in I.T.A.No.97/2010 respectively. The aforesaid assertion made by learned counsel for the assessee could not be disputed by learned counsel for the revenue. For the reasons assigned in the aforesaid judgments, the first and second substantial questions of law are answered against the revenue and in favour of the assessee. The third substantial question of law sur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on referred to in section 194D) or brokerage, shall, at the time of credit of such income to the account of the payee or at the time of payment of such income in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, deduct income- tax thereon at the rate of ten per cent. (2) The provisions of sub-section (1) shall not apply- (a) to such persons or class or classes of persons as the Central Government may, having regard to the extent of inconvenience caused or likely to be caused to them and being satisfied that it will not be prejudicial to the interests of the revenue, by notification in the Official Gazette 4, specify in this behalf; (b) where the amount of such income or, as the case may be, the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on behalf of another person for services rendered not being professional and for any services in the course of buying and selling of goods or in relation to any transaction relating to an asset, valuable article or thing. 7. Now we may advert to the facts of the case in hand. In case the credit card issued by the assessee was used on the swiping machine of another bank, the customer whose credit card was used got access to internet gateway of acquiring bank resulting in realization of the payment. Subsequently, the acquiring bank realize and recover the payment from the bank, which had issued the credit card. The relationship between the assessee and any other bank is not of an agency but that of two independent basis on principal- princi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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