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TMI Blog2022 (6) TMI 885X X X X Extracts X X X X X X X X Extracts X X X X ..... se dated 04.01.2013 is not borne out by judicial pronouncements. In consonance with the judicial precedents, the Ground No. 1 is allowed. Disallowance on account of staff recruitment expenses - AO disallowed the recruitment expenses on the ground that no TDS was deducted for such payments - It is the case of the assessee that the aforesaid payments is an aggregate sum incurred during the year and individual payments to different persons are very small generally ranging between Rs. 1500 to Rs. 7500/- per person - HELD THAT:- On perusal thereof, we find merit in the plea of the assessee for non deduction of TDS on such payments below threshold limit provided under Section 194C of the Act. - Decided in favour of assessee. TDS u/s 194J ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n treating Commissioner charged by credit card Company under section 194H of the Income Tax Act. 2. The Commissioner (Appeals) is wrong in disallowing Rs. 83,787/- on account of staff recruitment expenses. a) The Commissioner (Appeals) has failed to take into account that even after including commission of employees for referral for their salary below the taxable limit. 3. The Commissioner (Appeals) is wrong in disallowing a sum of Rs. 1,53,750/- on account of legal charges under section 40(a)(ia) of the Income Tax Act. a) On the facts of the expenses have been incurred for stamp paper and registration charges of the lease. 3. Briefly stated, the assessee inter alia incurred a sum of Rs. 20,83,340/- on account of cr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the transaction for the bank. The sale made on the basis of credit card is merely a transaction by the merchant establishment and the credit card company only facilitates the electronic payment for a certain charge. The commission retained by the credit card company is therefore akin to normal bank charges and not in the nature of commission/brokerage on behalf of the merchant establishment as envisaged under Section 194H of the Act. The assessee thus contends that the so called commission retained by credit card company is not in the nature of commission contemplated under Section 194H of the Act and therefore the disallowance under Section 40(a)(ia) is uncalled for. A reference was made to the judgment rendered by Hon'ble Delhi High C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Revenue, it was contended that TDS is applicable on charges attributable to foreign banks in view of the press release dated 04.01.2013 issued by Government of India for allowability of payment without TDS of credit/debit card commission on transactions between merchant establishment and acquirer banks. 6.3. In view of the judgment in the case JDS Apparels Pvt. Ltd. (supra), the artificial distinction between charges attributable to foreign banks (American Express Bank herein) vis- -vis. bank situated in India, in our view, is not justified. Such differentiation made in the press release dated 04.01.2013 is not borne out by judicial pronouncements. In consonance with the judicial precedents, the Ground No. 1 is allowed. 7. Gro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the result, the appeal of the assessee is allowed. ITA No. 1290/Del/2018 (Assessment Year 2014-15) 10. The captioned appeal has been filed by the Assessee against the order of the Commissioner of Income Tax (Appeals)-XXXV, New Delhi ('CIT(A)' in short) dated 12.10.2017 arising from the assessment order dated 09.12.2016 passed by the Assessing Officer (AO) under Section 143(3) of the Income Tax Act, 1961 (the Act) concerning AY 2014-15. 11. As per grounds of appeal, the assessee has challenged the disallowance of Rs. 2,95,609/- on account of credit card commission under Section 40(a)(ia) of the Act. The issue being identical to Ground No. 1 in ITA No. 1289/Del/2018, the conclusion arrived therein shall apply mutatis mut ..... X X X X Extracts X X X X X X X X Extracts X X X X
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