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Income Tax Appellate Tribunal, MUMBAI BENCHES “J”, MUMBAI
Before: Shri Joginder Singh, & Shri N.K. Pradhan
finding in the impugned order that the assessee did not earn any tax free income during previous year, thus, we are in agreement with the Ld. Commissioner of Income Tax (Appeal) that in view of this factual matrix section 14A cannot be invoked. Our view find support from the decision in the case of Lakhani Marketing Inc.(49 taxman.com 257)(P & H) and Shivam Motors Pvt. Ltd. (55 taxman.com 262)(Allahabad). We
9 M/s JSM Corporation P. Ltd. to 6925/Mum/2016 find no infirmity in the conclusion of the Ld. Commissioner of Income Tax (Appeal), thus, this ground is dismissed.
Next ground pertains to disallowance of Rs.1,10,56,879/- made under section 40(a)(ia) r.w.s. 194H of the Act on account of credit card expenses. The crux of arguments on behalf of the Revenue is that the order of the Tribunal in Jet Airways India Ltd., relied upon by Ld. Commissioner of Income Tax (Appeal), has not been accepted by the Department and the appeal has been filed before the Hon'ble High Court.
5.1. We have considered the submissions of Ld. DR and perused the material available on record. We find that this ground has been dealt with in para -7 onwards of the order along with the remarks made by the Ld. Assessing Officer.
The Ld. Commissioner of Income Tax (Appeal) considered the decision of the Tribunal in the case of Jet Airways (India) Ltd. (ITA NO.7439, 7440 & 7441/Mum/2010) order dated 17/07/2013 and held that TDS is not required to be deducted on credit card discount as it was a fee retained by the 10 M/s JSM Corporation P. Ltd. to 6925/Mum/2016 bank/credit card company. We find no infirmity in the order, therefore, it is upheld.
The next ground pertains to deleting the disallowance of Rs.2,14,08,225/- under section 40(a)(ia) of the Act on account of rent expenses. Considering the factual matrix and following the decision of the Tribunal in the case of Three Star Granite Pvt. Ltd. (49 taxman.com 578) (Coachin), wherein, it was held that short deduction of tax cannot be the reasons for disallowance under section 40(a)(ia) of the Act and thus the Ld. Commissioner of Income Tax (Appeal), deleted the addition. It was found by the Ld. Commissioner of Income Tax (Appeal) that even the Ld. Assessing Officer has not mentioned in the assessment order as to on which date, he called for TDS deduction and further observed that the assessee either deducted the TDS or deducted the TDS at lower rate, therefore, in view of this uncontroverted observation/finding, the stand of the Ld. Commissioner of Income Tax (Appeal) is affirmed. Thus, this ground of the Revenue is dismissed.
11 M/s JSM Corporation P. Ltd. to 6925/Mum/2016 7. Now, we shall take up the appeal for Assessment Year 2013-14 ( ), wherein, identical grounds has been raised. Considering the aforesaid decisions for Assessment Year 2012-13, wherein, identical grounds/issues has been raised. The Ld. DR advanced identical arguments, therefore, our decision of Assessment Year 2012-13 will squarely covers the grounds/issues raised for this year also, resultantly, the appeal of the Revenue, on the same reasoning is dismissed.
Finally, the appeals of the Revenue are dismissed.
This Order was pronounced in the open court in the presence of ld. DR at the conclusion of the hearing on 05/07/2018.