CIT v. JDS Apparels (P.) Ltd.

370 ITR 454High Court2015#2151 most cited

What is CIT v. JDS Apparels (P.) Ltd. authority for?

Payments to banks for credit card transaction processing are considered bank charges or fees for services rendered, not commission or brokerage, and therefore are not subject to TDS under Section 194H of the Income Tax Act.

54

judgments rely on this decision, according to BharatTax’s citation analysis of 366,314 Indian tax judgments — from 2015 to 2025.

Also referred to as

CIT v. JDS Apparels · Section 194H · TDS on commission · credit card transaction charges · bank charges vs commission · payment gateway fees · Section 40(a)(ia) · Make My Trip India · Jet Airways India

Also reported as

53 Taxmann.com 139

Sections most often in play

Section 14ASection 194HSection 36(1)(vii)Section 36(1)(viia)Section 40(a)(ia)Section 201(1)Section 37(1)Section 115WB
Read the full judgment

Issues it is cited on

section 8d(2)(ii)section 17(2)(iiia)section 8dsection 9(1)(ii)section 17(2)section 145(1)section 5(b)section 209section 194hsubstance over formsection 35dsection 14a(2)

Judgments citing CIT v. JDS Apparels (P.) Ltd.

M/S. Satelite Television Asian Region Ltd., Mumbai vs. DDIT (Int. I.T) 2(1), Mumbai

In the result, all the appeals by the assessee and the Revenue are partly

ITA 6604/MUM/2004[2001-2002]Status: DisposedITAT Mumbai05 Oct 2018AY 2001-2002

Bench: Shri Shamim Yahya, Am & Shri Ram Lal Negi, Jm

Section 195Section 197Section 40Section 9Section 9(1)(i)

…IN THE INCOME TAX APPELLATE TRIBUNAL “L”, BENCH MUMBAI BEFORE SHRI SHAMIM YAHYA, AM & SHRI RAM LAL NEGI, JM ITA Nos.6604/Mum/2004 & 4348/Mum/2005 (Assessment Years: 2001-02 & 2002-03) M/s. Satellite Television Asian Vs. Deputy Director of Income- Region Ltd., Tax (International Taxation)- 8th Floor, One Harbour Front 2(1) 18, Tak Fung Street Scindia House Hunghom, Kowloon Ballard Pier Hongkong Mumbai – 400 001 Mumbai Address: M/s. Satellite Television Asian Region Ltd., C/o. DSK Legal 4th Floor, Express Towers Nariman Point Mumbai – 400 021 (Appellant) .. (Respondent) & Deputy Director of Vs. M/s. Satellite…

DCIT 10(1)(1), Mumbai vs. Hotel Leela Venture Ltd, Mumbai

In the result, appeal of the Revenue is dismissed

ITA 5825/MUM/2015[2012-13]Status: DisposedITAT Mumbai25 Oct 2017AY 2012-13

Bench: Shri C.N. Prasad, Hon'Ble & Shri Rajesh Kumar, Hon'Ble

For Appellant: Shri Milind VavareFor Respondent: Shri M.C. Omi Ningshen
Section 194HSection 40Section 40a

…wever as the issue in appeal i.e whether the commission paid to credit card companies on credit card transaction would attract provisions of section 194H of the Act was already decided by the Hon'ble Delhi High Court in the case of CIT v. JDS Apparels P. Ltd [370 ITR 454]., we proceed to dispose of this appeal by rejecting the adjournment petition and on hearing the Ld.DR on merits. 4. Briefly stated the facts are that, the Assessing Officer while completing the assessment noticed that assessee received payment through credit cards from customers and assessee has made payments towards commission to various banks…

Bharat Sanchar Nigam Ltd., New Delhi vs. Addl. CIT, New Delhi

In the result, the appeal of the assessee is partly allowed

ITA 920/DEL/2017[2009-10]Status: DisposedITAT Delhi25 Oct 2017AY 2009-10

Bench: : Shri Amit Shukla & Shri L.P. Sahu

Section 147Section 194HSection 250Section 271(1)(c)Section 40Section 9

…ar (supra) is against the appellant and as accepted by tax department the decision of Hon’ble Karnataka High Court in case of Bharti Airtel (supra) is in favour of the appellant. In support Ld. AR relied upon the decision of JDS Apparels Pvt. Ltd. reported in 370 ITR 454 (Del). Before concluding, Ld. AR also invited our attention towards pleadings made before lower authorities wherein it was specifically submitted by the appellant that the quantum of disallowance has been wrongly computed, however, the lower authorities thereafter have not addressed this grievance. 10. Repudiating the above contentions, the Ld. C…

DCIT, New Delhi vs. M/S. Pc Jeweller Ltd., New Delhi

In the result, the appeal of the Revenue is dismissed

ITA 4943/DEL/2015[2012-13]Status: DisposedITAT Delhi23 Oct 2017AY 2012-13

Bench: Shri G.D. Agrawal, Hon’Ble & Shri K.N. Chary

Section 115JSection 40

…IT (A) ignored that such a provision in this case was created to meet the unascertained liability and required to be added back. On the other hand, it is the argument of the Ld. AR that basing on the decision reported in CIT vs. JDS Apparels (P) Ltd. (2015) 370 ITR 454 (Delhi), Ld. CIT (A) concluded that there is no requirement of TDS on bank charges, and further placing reliance on the decision of a coordinate Bench of this Tribunal in ACIT vs. M/s NHPC Ltd. Ld. CIT (A) decided on 30.09.2014, he concluded that any ascertain liability cannot result in addition to the book profits, and in this case the Ld. CI…

M/S. Makemytrip (India) Private Limited, Gurgaon vs. Addl.CIT, New Delhi

In the result, the appeal of the assessee is partly allowed

ITA 4721/DEL/2014[2009-10]Status: DisposedITAT Delhi26 Sept 2017AY 2009-10

Bench: Shri Bhavnesh Saini & Shri L. P. Sahu.

For Appellant: Shri Tarandeep Singh, C. AFor Respondent: Ms. Renu Amitabh, CIT [DR]
Section 194HSection 195Section 40

…I. T. Appeal No. 4721/Del/2014 Assessment Year : 2009–10. (supra) we find that this issue is already decided in favour of the assessee by the Tribunal following the decision of the Hon’ble Delhi High Court in the case of CIT Vs. JDS Apparels (P.) Ltd. (2015) 370 ITR 454 (Del.) in which it was held “that commission to bank on payments received from customers who had made purchase through credit cards is not liable to TDS under section 194H of the I. T. Act.” The issue is covered in favour of the assessee by order of ITAT, Delhi Bench in the case of same assessee vide order dated 30th January, 2017. Therefore, the…

ITO(TDS) 3(4), Mumbai vs. Tribhovandas Bhimji Zaveri Ltd, Mumbai

In the result, the appeal filed by the revenue is hereby

ITA 5418/MUM/2014[2012-13]Status: DisposedITAT Mumbai28 Oct 2016AY 2012-13
For Appellant: Shri Sanjay ParikhFor Respondent: Shri G. Nantha Kumar
Section 133ASection 194HSection 201(1)

…ite similar with the case i.e. M/s.Jet Airways (India) Ltd. relied by the CIT(A) in order in question. Now this issue has been decided in number of judgments relying upon the Hon’ble Delhi High Court decision in the case of CIT Vs. JDS Apparels P. Ltd. (2015) 370 ITR 454 (Del.) and ITAT Bangalore Tribunal in the case of Tata Teleservices Ltd. Vs. DCIT (2013) 140 ITD 451 (Bang.). It is specifically held that the payments made to the bank on account of utilization of credit card facilities is not in the nature of commission within the meaning of section 194H of the Act, therefore, no TDS is required to be deducted…

M/S. Bharti Airtel Ltd., New Delhi vs. Addl. CIT, New Delhi

In the result appeal of the assessee with respect to ground No

ITA 5816/DEL/2012[2008-09]Status: DisposedITAT Delhi24 Oct 2016AY 2008-09

Bench: Shri I.C.Sudhir & Shri Prashant Maharishibharti Airtel Ltd, Addl Cit, Bharti Crescent, 1, Vs. Range-2, Cr Building, Ip Nelson Mandela Road, Vasant Estate, New Delhi Kunj, New Delhi Pan:Aaacb2894G (Appellant) (Respondent) Bharti Airtel Ltd, Addl Cit, Bharti Crescent, 1, Vs. Range-2, Cr Building, Ip Nelson Mandela Road, Vaxant Estate, New Delhi Kunj, New Delhi Pan:Aaacb2894G (Appellant) (Respondent)

For Appellant: Sh. Ajay Vohra, SrFor Respondent: Sh. NC Swain, CIT DR (OSD)
Section 201Section 254Section 40

…if the assessee is held to be in 'default' by way of an order passed under section 201 under Chapter XVII-B of the Act. x. Reliance in this regard is placed on the decision of the jurisdictional Delhi High Court in the case of CIT vs. JDS Apparels (P.) Ltd.: 370 ITR 454 wherein it has been held that doubtful penalization should be avoided in case of disallowance made under section 40(a)(ia) of the Act. The relevant findings of the Court are reproduced as under: "77. Another reason why we feel Section 4Q(a)(ia) of the Act should not have been invoked in the present case is the principle of doubtful penalization w…

ITO (TDS) 2(3), Mumbai vs. Maharashtra Tourism Developement Corporation Ltd, Mumbai

The appeal of the Revenue is dismissed

ITA 5232/MUM/2014[2011-12]Status: DisposedITAT Mumbai05 Oct 2016AY 2011-12

Bench: Shri Joginder Singh & Shri D. Karunakar Raoassessment Year: 2011-12 Income Tax Officer(Tds)- M/S Maharashtra Tourism 2(3), Development Corporation Ltd. बनाम/ R. No.708, 7Th Floor, Express Tower, 9Th Floor, Vs. Smt. K.G. Mittal Ayurvedic Madam Cama Road, Hospital Building, Nariman Point, Charni Road, Mumbai-400021 Mumbai-400002 (राज"व /Revenue) ("नधा"रती /Assessee) Pan. No.Aaacm0712G

Section 133ASection 194Section 194HSection 201(1)

…nclusion arrived at in the impugned order. Reliance was placed upon the decision in the case of DCIT vs M/s Vah Magna Retail Pvt. Ltd. (ITA No.905/Hyd/2011/Trib.), Income Tax Officer vs Jet Airways (India) Ltd. 28 ITR 582 (Mum.), CIT vs JDS Apparels Pvt. Ltd. 370 ITR 454 (Del.)(HC). The ld. DR did not controvert the cases relied upon by the assessee. 2.1. We have considered the rival submissions and perused the material available on record. The facts, in brief, 3 M/s Maharashtra Tourism Development Corporation Ltd. are that the ld. Assessing Officer while completing the assessee company held that the assessee c…

M/S Bharti Hexacom Ltd., New Delhi vs. ACIT, New Delhi

In the result, assessee’s appeals are allowed and department’s appeal dismissed

ITA 3394/DEL/2012[2008-09]Status: DisposedITAT Delhi21 Apr 2016AY 2008-09

Bench: Shri S.V. Mehrotra: & Shri A.T. Varkey:

For Appellant: Shri Anil Bhalla CA &For Respondent: Shri A.K. Saroha CIT (DR)
Section 115JSection 194HSection 194JSection 234BSection 35ASection 40Section 54

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “A” NEW DELHI BEFORE SHRI S.V. MEHROTRA: ACCOUNTANT MEMBER AND SHRI A.T. VARKEY: JUDICIAL MEMBER ITA nos. 3394/Del/2012 & 2899/Del/2013 Asstt. Yrs: 2008-09 & 2006-07 M/s Bharti Hexacom Limited, Vs. ACIT Circle 2(1), Bharti Crescent 1, New Delhi. Nelson Mandela Road, Vasant Kunj Phase II, New Delhi-110070. PAN: AABCB 5576 G AND Asstt. Yrs: 2008-09 ACIT Circle 2(1), Vs. M/s Bharti Hexacom Limited, New Delhi. Bharti Crescent 1, Nelson Mandela Road, Vasant Kunj Phase II, New Delhi-110070. ( Appellant ) (Respondent) Assessee by : Shri Anil Bhalla CA & Shri V.K. Meena C…

ACIT (TDS) 1(2), Mumbai vs. Hotel Leela Ventures Ltd (the Leela), Mumbai

Accordingly the appeal filed by the revenue is hereby dismissed

ITA 7089/MUM/2014[2011-12]Status: DisposedITAT Mumbai10 Feb 2016AY 2011-12

Bench: S/Shri B.R.Baskaran & Amarjit Singhआयकर अपील सं/ I.T.A. No.7089/M/14 ("नधा"रण वष" / Assessment Year: 2011-12) Asst. Commissioner Of बनाम/ M/S. Hotel Leela Venture Income Tax (Tds) 1(2) Ltd. (The Leela) Vs. Room No.803, The Leela Kempenski, K.G.Mittal Hospital Building, Sahar, Charni Road(W), Andheri (East), Mumbai - 400002 Mumbai - 400059 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaach3167J

For Appellant: Shri Prakash K. JotwaniFor Respondent: Shri M. Daya Sagar CIT-DR
Section 194HSection 201(1)Section 40

…आयकर अपील"य अ"धकरण,“एच” "यायपीठ, मुंबई IN THE INCOME TAX APPELLATE TRIBUNAL “H” BENCH, MUMBAI "ी बी. आर. बा"करन, लेखा सद"य यवं "ी अमरजीत "संह, "या"यक सद"य, के सम" BEFORE S/SHRI B.R.BASKARAN, ACCOUNTANT MEMBER AND AMARJIT SINGH, JUDICIAL MEMBER आयकर अपील सं/ I.T.A. No.7089/M/14 ("नधा"रण वष" / Assessment Year: 2011-12) Asst. Commissioner of बनाम/ M/s. Hotel Leela Venture Income Tax (TDS) 1(2) Ltd. (The Leela) Vs. Room No.803, The Leela Kempenski, K.G.Mittal Hospital Building, Sahar, Charni Road(W), Andheri (East), Mumbai - 400002 Mumbai - 400059 "थायी लेखा सं./जीआइआर सं./PAN/GIR No. : AAACH3167J (अपीलाथ" /Appella…

DCIT8(3), Mumbai vs. Wah Restaurants P.Ltd ( Formerly Known As M/S. Mars Restauratns P.Ltd), Mumbai

In the result, appeal stands allowed for statistical purposes

ITA 1664/MUM/2013[2009-10]Status: DisposedITAT Mumbai29 Jan 2016AY 2009-10

Bench: Shri Saktijit Dey & Shri Ashwani Taneja

For Appellant: Shri Jitendra JainFor Respondent: Shri Nitin Waghmode
Section 194HSection 194ISection 40

…missions of the parties and perused the material available on record. As can bee seen, the issue in dispute is squarely covered in favour of the assessee by a series of decisions of different benches of the Tribunal as under:– i) CIT v/s JDS Apparels, [2015] 53 Taxmann.com 139 (Del.) ii) ACIT V/s Jet Airways India Ltd., 146 ITD 682; and iii) ITO v/s Jet Airways India Ltd., 147 ITD 133. In view of the aforesaid, we do not find any infirmity in the order of the learned Commissioner (Appeals) which is accordingly upheld. Ground no.2, is dismissed. M/s. Wah Restaurants Pvt. Ltd. 11 12. In the result, Revenue’s appe…

DCIT, New Delhi vs. M/S. Times Internet Limited, Gurgaon

In the result the appeal of the Revenue is dismissed

ITA 1099/DEL/2014[2010-11]Status: DisposedITAT Delhi09 Oct 2015AY 2010-11

Bench: Shri J. Sudhakar Reddyay: 2010-11 Dy.Cit, Circle 51(1) Vs. Times Internet Limited New Delhi 1, World Tower Opp. To Golf Course Dlf Phase V Gurgaon 122 002 Pan: Aabct 1559 M (Appellant) (Respondent)

For Appellant: Sh.Gautam Jain, AdvFor Respondent: Sh. Raman Kant Garg, Sr.D.R
Section 194Section 201(1)

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘SMC-2’, NEW DELHI BEFORE SHRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER AY: 2010-11 Dy.CIT, Circle 51(1) vs. Times Internet Limited New Delhi 1, World Tower Opp. To Golf Course DLF Phase V Gurgaon 122 002 PAN: AABCT 1559 M (Appellant) (Respondent) Appellant by : Sh.Gautam Jain, Adv. Respondent by : Sh. Raman Kant Garg, Sr.D.R. ORDER This is an appeal filed by the Revenue directed against the order of the Ld.CIT(A)-XXX, New Delhi order dt. 18.12.2013 pertaining to the A.Y. 2010- 11. 2. The facts are brought out at para 1 of the Ld.ACIT passed u/s 201(1) r.w.s. 201…

The Commissioner of Income Tax vs. M/S. Adishwar India Ltd

ITA/96/2015HC Karnataka03 Aug 2015

Bench: B.MANOHAR,VINEET SARAN

Section 194HSection 260Section 40

…the assessee would not be a commission or brokerage that would attract the provisions of Section 194H of the Act. 3 The Division Bench of Delhi High Court also in the case of Commissioner of Income Tax –vs- JDS Apparels Private Limited (2015) 370 ITR 454 held that the amount retained by the bank is a fee charged by them for having rendered the banking services and cannot be treated as a commission or brokerage paid in course of use of any services by a person acting on behalf of another for buying or selling of goods. As such, we are of the opinion that no substantial question of law aris…

ACIT, Mangalore vs. M/S Corporation Bank, Mangalore

In the result, appeal of the revenue stands dismissed

ITA 1264/BANG/2013[2011-12]Status: DisposedITAT Bangalore11 Mar 2015AY 2011-12

Bench: Shri Rajpal Yadav & Shri Abraham P George

For Appellant: Shri S. Ananthan, CAFor Respondent: Dr. P.K.Srihari, Addl.CIT
Section 36(1)Section 36(1)(vii)Section 36(1)(viia)Section 36(1)(viiia)

…IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH ‘B’, BANGALORE BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI ABRAHAM P GEORGE, ACCOUNTANT MEMBER ITA No.1264(Bang) 2013 (Assessment year : 2011-12) The Asst. Commissioner of Income-tax, Circle-2(1), Mangalore Appellant Vs M/s Corporation Bank, Financial Management Division, H.O.P.B No.88. Mangladevi Temple Road, Pandeshwar, Mangalore Respondent Pan No.AAACC7245E And ITA No.1352(B)/2013 (Assessment year : 2011-12) M/s Corporation Bank, Financial Management Division, H.O.P.B No.88. Mangladevi Temple Road, Pandeshwar, Mangalore Pan No.AAACC7245E Appell…