DCIT (TDS) 2(1), MUMBAI V. JET AIRWAYS (INDIA) LTD, MUMBAI

ITA 4348/MUM/2014

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 3520 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 8 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-02-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: J
• Next Hearing Date: 12-01-2016
• Assessment Year: 2011-2012
• Appeal Filed On: 20-06-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ALOK JOHRI
• Assessee Lawyers: PRIYESH VIRA
• Section: 201(1)

Judgement Text

ITA NO. 4348 / MUM /201 4 ASSESSMEN T Y EAR: 20 1 1 - 1 2 PAGE 1 OF 6 IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI J BENCH, MUMBAI [CORAM : PRAMOD KUMAR AM AND PAWAN SINGH JM] ITA NO. 4348 / MUM /201 4 AS SESSMENT Y EAR : 20 1 1 - 12 DY. COMMISSIONER OF INCOME TAX (TDS) - 2(1), ........ .APPELLANT MUMBAI. VS. JET AIRWAYS (I NDIA) LIMITED .......... . RESPONDENT SIROYA CENTER, SAHAR AIRPORT ROAD, ANDHERI (E), MUMBAI. [PAN: A AAC J 0920 H ] APPEARANCES BY: ALOK JOHRI , FOR THE A PPELLANT P RIYESH VIRA , F OR THE RE SPONDENT DATE OF CONCLUDING THE HEARING : JANUARY 1 4 TH , 201 6 DATE OF PRONOUNCING THE ORDER : FEBRUARY 29 TH , 201 6 O R D E R PER PRAMOD KUMAR AM : THIS APPEAL IS DIRECTED AGAINST THE ORDER D ATED 23 RD APRIL, 2014, PASSED BY THE L EARNED CIT ( A ) IN THE MATTER OF DEMANDS RAISED ON THE ASSES SE E UNDER S E CT I ON 201 R.W.S. 194H AND 194I OF THE OF THE INCOME TAX ACT, 1961 ( THE ACT HEREINAFTER), FOR THE ASSESSMENT YEAR 20 1 1 - 12 . 2. GRIEVANCES RAISED BY THE APPELLANT ARE AS FOLLOWS : - (I) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, T HE LD. CIT(A) HAS ERRED IN GIVING RELIEF TO THE ASSESSEE BY HOLDING THAT TDS IS NOT DEDUCTIBLE U/S. 194 I OF THE ACT ON THE PAYMENTS MADE TO AIRPORTS FOR PASSENGER SERVICE FEES (PSF). ITA NO. 4348 / MUM /201 4 ASSESSMEN T Y EAR: 20 1 1 - 1 2 PAGE 2 OF 6 (II) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE L D. CIT(A) HAS ERRED IN GIVING RELIEF TO THE ASSESSEE ON PSF ISSUE BY RELYING UPON THE DECISION OF HON'BLE IT AT EVEN THOUGH THE HON'BLE DELHI HIGH COURT HAS DECIDED THE SIMILAR ISSUE IN FAVOUR OF THE DEPARTMENT IN JAPAN AIRLINES (2009) 180 TAXMAN 188 (DELHI ). (III) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) HAS ERRED IN GIVING RELIEF TO THE ASSESSEE BY HOLDING THAT TDS IS NOT DEDUCTIBLE U/S. 194H OF THE ACT ON PAYMENTS MADE TO BANKS FOR AIR TICKETS BOOKED THROUGH CREDIT CARD. 3. LEARNED DEPARTMENTAL REPRESENTATIVE POINTS OUT THAT T HE GROUNDS ARE NOT HAPPILY WOR DED INASMUCH AS REFERENCE TO THE JUDICIAL PRECEDENT IN THE CASE OF JAPAN AIRL IN E IS PERHAPS INCORRECT. HOWEVER, AS LEARNED REPRESENTATIVES FAIRLY AGREED, THE CO RE ISSUES IN THIS APPEAL ARE WHETHER OR NOT LEARNED CIT ( A ) WAS JUSTIFIED IN (A) DELETING DEMAND OF RS.28,67,45,405/ - UNDER SECTION 201(1) R.W.S. 194I AND OF RS.8,35,62,770/ - UNDER SECTION 201(1A) R.W.S. 194I; AND (B) DELETING DEMAND OF RS.1,98,46,085/ - UND ER S E CTION 201(1) R.W.S. 194H AND OF RS.58,66,087/ - UNDER SECTION 201(1A) R.W.S. 194H. T HESE DEMANDS ARE IN RESPECT OF TAX WITHHOLDING LIABILITIES FROM PAYMENTS ON ACCOUNT OF PSF (PASSENGER SERVICE FEES) AND CREDIT CARD SERVICE C HARGES, PAID TO THE AIRPOR T AUTHORITY AND C REDIT C ARD COMPANIES RESPECTIVELY. 4. LEARNED REPRESENTATIVES FAIRLY AGREE THAT BOTH THE ABOVE ISSUES A RE SQUARELY COVERED BY TRIBUNAL S ORDER DATED 23 RD OCTOBER, 2013 FOR THE ASSESSMENT YE AR 2010 - 11 AND DATED 17 TH JULY, 2013 IN ASSESSEE S OWN CASE FOR THE ASSESSMENT YEARS 2009 - 10, 2007 - 08 AND 2008 - 09. IN THIS ORDER, THE CO - ORDINATE BENCH HAS, INTER ALIA, OBSERVED AS FOLLOWS :_ ORDER DATED 23 RD OCTOBER, 2013 FOR THE ASSESSMENT YE AR 2010 - 11 12. WE HAVE CAREFULLY CONSIDERED THE RIVAL SUBM ISSIONS AND PERUSED THE ORDERS OF THE AUTHORITIES BELOW AND THE RELEVANT MATERIAL EVIDENCE BROUGHT ON RECORD. LET US FIRST SEE THE CAUSE OF PSF, CAUSE LIES IN RULE 88 OF THE INDIAN AIRCRAFT RULES, 1937, WHICH PROVIDES AS UNDER : - ITA NO. 4348 / MUM /201 4 ASSESSMEN T Y EAR: 20 1 1 - 1 2 PAGE 3 OF 6 THE LICENSEE IS ENTITLED TO COLLECT FEES TO BE CALLED AS PASSENGERS SERVICES FEES(PSF) FROM THE EMBARKING PASSENGERS AT SUCH RATE AS THE CENTRAL GOVERNMENT MAY SPECIFY AND IS ALSO LIABLE TO PAY FOR SECURITY COMPONENT TO ANY SECURITY AGENCY DESIGNATED BY THE CENTRAL GOVERNMENT FOR PROVIDING THE SECURITY SERVICES A PERUSAL OF THE AFOREMENTIONED RULE CLEARLY SHOWS THAT IT IS A STATUTORY LIABILITY FOR EVERY LICENSEE TO COLLECT PSF. SINCE IT IS A STATUTORY LIABILITY AND THE MEANING GIVEN BY THE STATUTE HAS TO BE CONSIDERED AND IN THI S CASE THE INDIAN AIRCRAFT RULES, 1937 HAS USED THE TERM FEES , THEREFORE, SAME MEANING HAS TO BE GIVEN WHILE CONSIDERING THE PSF. IT IS NOT IN DISPUTE THAT THE ASSESSEE IS ONLY ACTING AS A CONDUIT BETWEEN THE EMBARKING PASSENGERS AND THE CENTRAL GOVERNME NT AGENCY. THIS VIEW IS ALSO FORTIFIED BY THE FACT THAT OUT OF RS.200/ - , RS.130/ - IS THE SECURITY COMPONENT, WHICH IS DEPOSITED IN A SEPARATE ESCROW ACCOUNT, WHICH IS OPERATED AND CAN BE UTILIZED BY AIRPORT CONCERNED ONLY TO MEET THE SECURITY RELATED EXPEN SES OF THAT AIRPORT. 13. FURTHER IT IS PERTINENT TO NOTE THAT THE CBDT IN ITS OFFICE MEMORANDUM DATED 30 - 06 - 2008 HAS CLEARLY STATED THE FACT THAT THE LICENSEE OF THE AIRPORT I.E. THE AIRPORT OPERATOR, IS REQUIRED TO COLLECT THE PSF IS INITIALLY COLLECTED BY THE CONCERNING AIRLINES FROM THE PASSENGERS AND THEN HANDED OVER TO THE RESPECTIVE AIRPORT OPERATOR/AUTHORITY. THUS, IT IS ABSOLUTELY CLEAR THAT THE ASSESSEE ONLY COLLECTS THE PSF FROM THE PASSENGERS FOR AND ON BEHALF OF THE AIRPORT AUTHORITY/OPERATOR AND PASSES THE SAME TO THE AIRPORT AUTHORITY/OPERATOR. THIS VIEW WOULD ALSO BE MADE VERY CLEAR BY THE ANSWER TO QUESTION NO.24 GIVEN BY THE CBDT IT IS CIRCULAR NO.715, DATED 8 TH AUGUST, 1995, WHICH RELATES TO CLARIFICATION OF VARIOUS PROVISIONS RELATING TO TAX DEDUCTION AT SOURCE. QUESTION NO.24 READS AS UNDER : - QUESTION 24 : WHETHER IN A CASE OF COMPOSITE ARRANGEMENT FOR USER OF PREMISES AND PROVISION OF MANPOWER FOR WHICH CONSIDERATION IS PAID AS A SPECIFIED PERCENTAGE OF TURNOVER, SECTION 194 - I OF THE ACT WOULD BE ATTRACTED ? ANSWER : IF THE COMPOSITE ARRANGEMENT IS IN ESSENCE THE AGREEMENT FOR TAKING PREMISES ON RENT, THE TAX WILL BE DEDUCTED UNDER SECTION 194 - I FROM PAYMENTS THEREOF. THE FACTS UNDER CONSIDERATION SHOW THAT THE PSF IS A STATUTORY L IABILITY WITHOUT DEMARCATING/EARMARKING THE AREA TAKEN ON RENT, NOR IT IS A CASE OF SYSTEMATIC USE OF LAND SPECIFIED FOR CONSIDERATION UNDER AN ARRANGEMENT, WHICH CARRIES THE CHARACTERISTICS OF LEASE OR TENANCY. A MERE USE OF THE LAND AND PAYMENT CHARGED, WHICH IS NOT FOR THE USE OF THE LAND BUT FOR MAINTENANCE OF THE VARIOUS SERVICES INCLUDING TECHNICAL SERVICES WOULD NOT TECHNICALLY BRING THE TRANSACTION AND THE CHARGES WITHIN THE MEANING OF EITHER LEASE OR SUB - LEASE OR TENANCY OR ANY OTHER AGREEMENT OR A RRANGEMENT OR ANY NATURE OF LEASE OR TENANCY AND RENT. FOR THESE OBSERVATIONS, WE DRAW SUPPORT FROM THE DECISION OF THE HON BLE MADRAS HIGH COURT IN THE CASE OF CIT VS. SINGAPORE AIRLINES LTD., REPORTED IN (2012) 252 CTR (MAD) 429. 14. IT WOULD NOT BE OU T OF PLACE TO CONSIDER THE CBDT CIRCULAR NO.1/2008, DATED 10 TH JANUARY, 2008 RELATING TO THE CLARIFICATION REGARDING THE APPLICABILITY OF PROVISIONS OF SECTION 194 - I OF THE ACT TO PAYMENTS MADE BY THE CUSTOMERS ON ACCOUNT OF COOLING CHARGES TO THE COLD STO RAGE OWNERS, WHEREIN THE CBDT HAD THE OCCASION TO CONSIDER THE REPRESENTATIONS IN ITA NO. 4348 / MUM /201 4 ASSESSMEN T Y EAR: 20 1 1 - 1 2 PAGE 4 OF 6 RESPECT OF THE ISSUE, WHETHER THE CUSTOMER HIRES THE BUILDING, PLANT AND MACHINERIES ETC., WITHOUT PACKAGES FOR RESERVATION FOR A REQUIRED PERIOD ARE KEPT IN COLD STORAGE AFT ER PAYING COOLING CHARGES. THE CBDT, THUS, CLARIFIED THAT THE CUSTOMER IS ALSO NOT GIVEN ANY RIGHT TO USE ANY DEMARCATED SPACE/PLACE OR THE MACHINERY OF THE COLD STORAGE AND THUS DOES NOT BECOME A TENANT. THEREFORE, THE PROVISIONS OF 194 - I IS NOT APPLICABL E TO THE COOLING CHARGES PAID BY THE CUSTOMERS OF THE COLD STORAGE. APPLYING THE SAME ANALOGY, THE PSF CHARGES PAID BY THE ASSESSEE ON BEHALF OF ITS CUSTOMERS, DO NOT ATTRACT THE PROVISIONS OF SECTION 194 - I OF THE ACT. 15. CONSIDERING ALL THESE JUDICIAL D ECISIONS IN THE LIGHT OF THE FACTS OF THE CASE, WE DO NOT FIND ANY ERROR/OMISSION IN THE FINDINGS OF THE CIT(A). HENCE, THE ASSESSEE SUCCEEDS AND THE REVENUE FAILS AND THE FINDINGS OF THE CIT(A) ARE CONFIRMED. ACCORDINGLY, GROUNDS NO.1 & 2 ARE HEREBY DISM ISSED. ORDER DATED 17 TH JULY, 2013 FOR THE ASSESSMENT YEARS 2009 - 10, 2007 - 08 AND 2008 - 09. 9. WE HAVE CAREFULLY CONSIDERED THE SUBMISSIONS OF THE LD. REPRESENTATIVES OF THE PARTIES AND THE ORDERS OF THE AUTHORITIES BELOW. WE HAVE ALSO CAREFULLY CONSIDERE D THE PROVISIONS OF SECTION 194H OF THE ACT. WE OBSERVE THAT THE SIMILAR ISSUE HAS BEEN CONSIDERED BY THE JAIPUR BENCH OF THE TRIBUNAL IN THE CASE OF M/S. GEMS PARADISE (SUPRA) AND THE TRIBUNAL HELD VIDE PARAGRAPH 27 OF THE SAID ORDER THAT THE PROVISIONS O F SECTION 194H OF THE ACT ARE NOT APPLICABLE AS THE BANKS MAKE PAYMENTS TO THE ASSESSEE AFTER DEDUCTING CERTAIN FEES AS PER THE TERMS AND CONDITIONS IN THE CREDIT CARD AND IT IS NOT A COMMISSION BUT A FEE DEDUCTED BY THE BANKS. THE SAID PARAGRAPH 27 OF THE ORDER IS REPRODUCED BELOW : 27. AFTER CONSIDERING THE ORDERS OF THE AO AND LD. CIT (A), WE FIND THAT ASSESSEE DESERVES TO SUCCEED IN THIS REGARD. SECTION 194H IS APPLICABLE WHERE ANY COMMISSION HAS BEEN PAID BY THE PRINCIPAL TO THE COMMISSION AGENT. TH IS IS NOT A CASE OF COMMISSION AGENT AS ASSESSEE SOLD ITS GOODS THROUGH CREDIT CARD AND ON PRESENTATION OF BILL ISSUED AGAINST CREDIT CARD, THE BANK MAKES PAYMENT TO THE ASSESSEE AFTER DEDUCTING AGREED FEES AS PER TERMS AND CONDITIONS IN CASE OF CREDIT CAR D. THIS IS NOT A COMMISSION PAYMENT BUT A FEES DEDUCTED BY THE BANK. IF THERE IS AN AGREEMENT, THAT IS AGREEMENT BETWEEN THE CREDIT CARDHOLDER AND THE BANK. BANK IS A PRINCIPAL AND TO SPREAD OVER ITS BUSINESS, A SCHEME IS FLOATED BY BANK I.E. ISSUANCE OF C REDIT CARDS. BANK ISSUES CREDIT CARD TO THE VARIOUS CUSTOMERS WHO PURCHASE THE VARIOUS CREDIT CARDS ON THE AGREED TERMS AND CONDITIONS. ONE OF THE MAJOR CONDITION IS THAT IF CREDIT CARD HOLDER DOES NOT MAKE PAYMENT WITHIN THE PRESCRIBED TIME LIMIT THEN THE Y CHARGE 2% PENAL AMOUNT OF BILL WHICH IS RAISED BY THE SHOP KEEPER AGAINST SALE OF ITS ITEMS THROUGH CREDIT CARD. BANK CANNOT REFUSE THE PAYMENT TO THE SHOP KEEPER WHO SALE THEIR GOODS THROUGH CREDIT CARD. ONLY IN THOSE CASES WHERE GOODS ARE FOUND DAMAGED AND CREDIT CARD HOLDER INFORM THE BANK THAT THE MATERIAL PURCHASED BY THEM IS DAMAGED OR DEFECTIVE AND REQUEST THE BANK NOT TO MAKE THE PAYMENT, IN SUCH CASES ONLY BANK CAN WITHHOLD THE PAYMENT, OTHERWISE THE BANK HAS TO MAKE THE PAYMENT TO THE SHOP KEEPE R. THEREFORE, IN OUR CONSIDERED VIEW, THERE IS NO SUCH RELATION BETWEEN THE BANK AND THE SHOP KEEPER WHICH ESTABLISHES THE RELATIONSHIP OF A PRINCIPAL AND COMMISSION AGENT. TECHNICALLY IT MAY BE WRITTEN THAT BANK WILL CHARGE CERTAIN PERCENTAGE OF COMMISSIO N BUT THIS IS NOT A COMMISSION BECAUSE ASSESSEE SELLS ITS GOODS AGAINST CREDIT CARDS, AND ON PRESENTATION OF BILLS, THE BANK HAS TO MAKE THE PAYMENT. IT IS NOT THE CASE THAT BANK HAS ADVISED THE ASSESSEE TO SELL THEIR GOODS TO ITS CUSTOMERS THEN HE WILL PA Y THE COMMISSION. IT IS REVERSED IN A SITUATION AS BANK ISSUED CREDIT CARDS TO THE CREDIT CARD HOLDERS ON CERTAIN FEES OR ITA NO. 4348 / MUM /201 4 ASSESSMEN T Y EAR: 20 1 1 - 1 2 PAGE 5 OF 6 WHATEVER THE CASE MAY BE AND THE CARD HOLDER PURCHASES MATERIAL FROM THE MARKET THROUGH HIS CREDIT CARD WITHOUT MAKING ANY PAYMENT AND THAT SHOP KEEPER PRESENTS THE BILL TO THE BANK AGAINST WHOSE CREDIT CARD THE GOODS WERE SOLD AND ON PRESENTATION OF BILL AS STATED ABOVE THE BANK MAKES THE PAYMENT. THEREFORE, IN OUR CONSIDERED VIEW, PROVISIONS OF SECTION 194H ARE NOT ATTRACTED IN THIS TY PE OF TRANSACTION. THEREFORE, WE HOLD THAT ADDITION MADE AND CONFIRMED BY LD.CIT (A) WAS NOT JUSTIFIED. ACCORDINGLY, THE ADDITION MADE AND CONFIRMED BY LD. CIT (A) IS DELETED. 10. WE OBSERVE THAT THE SAID ISSUE WAS AGAIN CONSIDERED BY THE JAIPUR BENCH O F THE TRIBUNAL IN THE CASE OF BHANDARI JWELLERS (SUPRA) AND FOLLOWING THE ABOVE DECISION OF THE TRIBUNAL, THE TRIBUNAL VIDE PARAGRAPH 7 OF THE SAID ORDER AGAIN HELD THAT THE PROVISIONS OF SECTION 194H OF THE ACT ARE NOT ATTRACTED IN THIS TYPE OF TRANSACTIO NS. IT WAS HELD THAT NO TDS IS REQUIRED TO BE DEDUCTED ON THE FEES CHARGED BY THE BANK ON CREDIT CARD TRANSACTIONS. WE ALSO OBSERVE THAT THE SIMILAR ISSUE AGAIN COME UP BEFORE THE HYDERABAD BENCH OF THE TRIBUNAL IN THE CASE OF M/S VAH MAGNA RETAIL (P) LTD (SUPRA) AND THE TRIBUNAL VIDE PARAGRAPH 4 OF THE SAID ORDER DISMISSED THE APPEAL OF THE DEPARTMENT BY HOLDING THAT THE AMOUNT RETAINED BY THE PRINCIPAL CONTRACTOR FROM THE PAYMENTS MADE TO THE CONTRACTING PERSONS AND THERE WAS NO REQUIREMENT FOR MAKING TDS ON THE AMOUNT. THE SAID PARAGRAPH 4 OF THE ORDER READS AS UNDER : 4. WE HEARD THE LEARNED DEPARTMENTAL REPRESENTATIVE AND PERUSED THE ORDERS OF THE LOWER AUTHORITIES AND OTHER MATERIAL ON RECORD. ASSESSEE IS A COMPANY ENGAGED IN THE BUSINESS OF DIRECT RETAIL TRADING IN CONSUMER GOODS. ASSESSEE CLAIMED DEDUCTION OF RS.16,34,000 ON ACCOUNT OF COMMISSION PAID TO THE CREDIT CARD COMPANIES, WHICH HAS BEEN DISALLOWED BY THE ASSESSING OFFICER IN TERMS OF S.40(A)(IA) ON ACCOUNT OF THE FAILURE OF THE ASSESSEE TO DEDUCT TAX AT SOURCE IN TERMS OF S.194H OF THE ACT, WHILE MAKING THE SAID COMMISSION PAYMENTS. IT WAS THE CONTENTION OF THE ASSESSEE BEFORE THE LOWER AUTHORITIES THAT THE ASSESSEE ONLY RECEIVES THE PAYMENT FORM THE BANK/CREDIT CARD COMPANIES CONCERNED, AF TER DEDUCTION OF COMMISSION THEREON, AND THUS, THIS IS ONLY IN THE NATURE OF A POST FACTO ACCOUNTING AND DOES NOT INVOLVE ANY PAYMENT OR CREDITING OF THE ACCOUNT OF THE BANKS OR ANY OTHER ACCOUNT BEFORE SUCH PAYMENT BY THE ASSESSEE. CONSIDERING THESE SUBMI SSION OF THE ASSESSEE, THE CIT(A) ACCEPTED THE CLAIM OF THE ASSESSEE FOR DEDUCTION OF THE AMOUNT OF RS.16,34 ,000 ON THE FOLLOWING REASONING : 9.8 ON GOING THROUGH THE NATURE OF TRANSACTIONS, I FIND CONSIDERABLE MERIT IN THE CONTENTION OF THE APPELLANT TH AT COMMISSION PAID TO THE CREDIT CARD COMPANIES CANNO T BE CONSIDERED AS FALLING WITH IN THE PURVIEW OF S.194H. EVEN THOUGH THE DEFINITION OF THE TERM COMMISSION OR BROKERAGE USED IN THE SAID SECTION IS AN INCLUSIVE DEFINITION, IT IS CLEAR THAT THE LIABILI TY TO MAKE TDS UNDER THE SAID SECTION ARISES ONLY WHEN A PERSON ACTS ON BEHALF OF ANOTHER PERSON. IN THE CASE OF COMMISSION RETAINED BY THE CREDIT CARD COMPANIES HOWEVER, IT CANNOT BE SAID THAT THE BANK ACTS ON BEHALF OF THE MERCHANT ESTABLISHMENT OR THAT EVEN THE MERCHANT ESTABLISHMENT CONDUCTS THE TRANSACTION FOR THE BANK. THE SALE MADE ON THE BASIS OF A CREDIT CARD IS CLEARLY A TRANSACTION OF THE MERCHANTS ESTABLISHMENT ONLY AND THE CREDIT CARD COMPANY ONLY FACILITATES THE ELECTRONIC PAYMENT, FOR A CERTA IN CHARGE. THE COMMISSION RETAINED BY THE CREDIT CARD COMPANY IS THEREFORE IN THE NATURE OF NORMAL BANK CHARGES AND NOT IN THE NATURE OF COMMISSION/BROKERAGE FOR ACTING ON BEHALF OF THE MERCHANT ESTABLISHMENT. ACCORDINGLY, CONCLUDING THAT THERE WAS NO REQU IREMENT FOR MAKING TDS ON THE COMMISSION RETAINED BY THE CREDIT CARD COMPANIES, THE DISALLOWANCE OF RS.16,34,000 IS DELETED..... ITA NO. 4348 / MUM /201 4 ASSESSMEN T Y EAR: 20 1 1 - 1 2 PAGE 6 OF 6 WE FIND NO INFIRMITY IN THE ABOVE REASONING GIVEN BY THE CIT(A). WE ACCORDINGLY UPHOLD THE ORDER OF THE CIT(A) AND REJECT TH E GROUNDS OF THE REVENUE WHICH ARE DEVOID OF MERIT. WE ALSO OBSERVE THAT THE BANGALORE BENCH OF THE TRIBUNAL BY FOLLOWING THE SAID DECISION OF THE HYDERABAD BENCH OF THE TRIBUNAL HAS HELD THAT THE PAYMENTS MADE TO THE BANKS ON ACCOUNT OF UTILIZATION OF C REDIT CARD FACILITIES WOULD BE IN THE NATURE OF BANK CHARGES AND NOT IN THE NATURE OF COMMISSION WITHIN THE MEANING OF SECTION 194H OF THE ACT AND HENCE NO TDS IS REQUIRED TO BE DEDUCTED U/S 194 H OF THE ACT. IN VIEW OF THE ABOVE WE HOLD THAT THE ISSUE IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE. RESPECTFULLY FOLLOWING THE DECISIONS OF THE CO - ORDINATE BENCHES OF THE TRIBUNAL WE UPHOLD THE ORDER OF THE LD. CIT(A) AND REJECT THE GROUNDS NO.1 TO 3 TAKEN BY THE DEPARTMENT FOR ALL THE THREE ASSESS MENT YEARS UN DER CONSIDERATION. 5. WE SEE NO REASONS TO TAKE ANY OTHER VIEW OF THE MATTER THAN THE VIEW SO TAKEN BY THE CO - ORDINATE BENCH IN ASSESSEE S OWN CASE. RESPECTFULLY FOLLOWING THE SAME, WE UPHOLD THE IMPUGNED RELIEF GRANTED BY THE LD . CIT(A ) AND DECL INE TO INTERFERE IN THE MATTER. 6. IN THE RESULT, THE APPEAL IS DISMISSED. PRONOUNCED IN THE OPEN COURT TODAY 29 TH DAY OF FEBRUARY, 2016. S D/ - S D/ - PAWAN SINGH PRAMOD KUMAR (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) DATED: THE 29 TH DAY OF FEBRUARY , 2016 . PBN/* COPIES TO : (1) THE APPELLANT (2) THE RESPONDENT (3) CIT (4) CIT(A) (5) DR (6) GUARD FILE BY ORDER DY./ ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL MUMBAI B ENCHES, MUMBAI