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Income Tax Appellate Tribunal, DELHI BENCH ‘C’ : NEW DELHI
Before: SHRI B.P. JAIN & SHRI KULDIP SINGH
per Notification No.56/2012, CIT (A) proceeded to delete the addition made by the AO by relying upon the decision rendered by ITAT, Mumbai in case of Kotak Securities Limited vs. DCIT.
Assessee in its submissions made before the ld. CIT (A) also relied upon the judgment of Hon’ble Delhi High Court in case cited as CIT vs. JDS Apparels Private Limited passed in dated 18.11.2014 wherein it is held by Hon’ble High Court that charges deducted by Bank for use of Swipe Machines for sales through credit cards is not commission and hence TDS is not deductible and as such, section 194H is not applicable.
In view of what has been discussed above and following the decision rendered by Hon’ble Delhi High Court in case cited as CIT vs. JDS Apparels Private Limited (supra), we are of the considered view that the assessee was not required to deduct TDS on credit card commission and services charges which is outside the purview of section 194H. Hence, we find no illegality or perversity in the impugned order and consequently present appeal filed by the Revenue is hereby dismissed. Order pronounced in open court on this 18th day of September, 2017.