ASST CIT CIR 6(2), MUMBAI V. CLEAR TRIP TRAVEL P.LTD, MUMBAI

ITA 7352/MUM/2014

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 1972 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 11 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-11-2016
• Appeal Filed By: Department
• Bench Allotted: C
• Assessment Year: 2009-2010
• Appeal Filed On: 09-12-2014
• Court: TRIBUNAL
• Department Lawyers: SUBHACHAN RAM
• Assessee Lawyers: M B ADVANI
• Section: 201(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, MUMBAI BEFORE SHRI B.R. BASKARAN (AM) & SHRI PAWAN SINGH (JM) I.T.A. NO. 7352 /MUM/ 2014 (ASSESSMENT YEAR 200 9 - 1 0 ) I.T.A. NO. 7353/MUM/2014 (ASSESSMENT YEAR 2010 - 11) ACIT CIRCLE - 6(2) ROOM NO. 563 AAYAKAR BH AVAN M.K. ROAD MUMBAI - 400 020. VS. M/S. CLEAR TRIP TRAVEL PVT. LTD. UNIT NO.1, GROUND FLOOR DTC BUILDING SITARAM MILLS COMPOUND N.M. JOSHI MARG LOWER PAREL MUMBAI. ( APPELLANT ) ( RESPONDENT ) PAN NO . AACCC6016B ASSESSEE BY SHRI M.B. ADVANI DEPARTME NT BY SHRI SUBHACHAN RAM DATE OF HEARING 1 5 .1 1 . 201 6 DATE OF PRONOUNCEMENT 15 . 11 . 201 6 O R D E R PER B.R. BASKARAN (AM) : - BOTH T HE APP E AL S FILED BY THE REVENUE ARE DIRECTED AGAINST THE ORDER S PASSED BY THE LEARNED CIT(A) - 12, MUMBAI AND THEY R ELATE TO A.Y. 2009 - 10 & 2010 - 11. SINCE THE ISSUE URGED IN BOTH THESE APPEALS IS IDENTICAL IN NATURE, THEY WERE HEARD TOGETHER AND ARE BEING DISPOSED OF BY THIS COMMON ORDER, FOR THE SAKE OF CONVENIENCE. 2. SOLITARY ISSUE URGED IN THESE APPEALS IS WHE THER THE LEARNED CIT(A) WAS JUSTIFIED IN DELETING THE DISALLOWANCE MADE U/S. 40(A)(IA) OF THE ACT FOR NON - DEDUCTION OF TAX AT SOURCE FROM THE PAYMENTS MADE TO THE CREDIT CARD AGENCIES/BANKS AS COLLECTION CHARGES . M/S. CLEAR TRIP TRAVEL PVT. LTD. 2 3. WE HAVE HEARD THE PARTIES AND PERUSED THE RECORD. THE ASSESSEE COMPANY IS ENGAGED IN THE BUSINESS OF PROVIDING TRAVEL RELATED ASSISTANCE LIME AIR TICKET BOOKS, RAIL TICKET BOOKINGS, HOTEL BOOKINGS ETC. DURING THE YEAR UNDER CONSIDERATION IT HAS PAID CREDIT CARD COLLECTION CHARGES TO BANKS A ND OTHER AGENCIES. THE ASSESSEE DID NOT DEDUCT TAX AT SOURCES FORM THE SAID PAYMENT BY TREATING THE SAME AS FINANCIAL CHARGES. HOWEVER, THE AO TOOK THE VIEW THAT THE SAME IS IN THE NATURE OF COMMISSION AND THE ASSESSEE SHOULD HAVE DEDUCTED TAX AT SOURCE U/S 194H OF THE ACT. THE LD CIT(A) HOWEVER DELETED THE SAME BY FOLLOWING HIS DECISION RENDERED ON IDENTICAL ISSUE IN THE PROCEEDINGS INITIATED U/S. 201(1) OF THE ACT FOR NON DEDUCTION OF TAX AT SOURCE FROM PAYMENTS MADE TO THE CREDIT CARDS AGENCIES/BANK. 4. LEARNED COUNSEL SUBMITTED THAT THE LEARNED CIT(A) HAD DELETED THE DEMAND RAISED U/S. 201(1) OF THE ACT AND THE SAME HAS BEEN CONFIRMED BY THE COORDINATE BENCH OF THE TRIBUNAL VIDE ITS ORDER DATED 16.5.2016 PASSED IN ASSESSEES OWN CASE IN ITA NO. 50 49/MUM/2014 RELATING TO A.Y. 2010 - 11. HE SUBMITTED THAT THE TRIBUNAL HAS ALREADY HELD THAT THE ASSESSEE IS NOT LIABLE TO DEDUCT TAX AT SOURCE FROM THE PAYMENTS MADE TO THE CREDIT CARD AGENCIES/BANK , SINCE THERE IS NO PRINCIPAL AGENT RELATIONSHIP BETWEEN TH E ASSESSEE AND THE CREDIT CARD AGENCIES/BANK . HE SUBMITTED THAT THE VIEW TAKEN BY THE TRIBUNAL IS ALSO GETTING SUPPORT FROM THE DECISION RENDERED BY THE HON'BLE DELHI HIGH COURT IN THE CASE OF JDS APPARELS PVT. LTD. (ITA NO. 608/2014 DATED 18.11.2014). AC CORDINGLY HE SUBMITTED THAT THE ORDERS PASSED BY THE LEARNED CIT(A) NEED TO THE CONFIRMED. 5 . ON THE CONTRARY, LEARNED DEPARTMENTAL REPRESENTATIVE STRONGLY SUPPORTED THE ORDERS PASSED BY THE ASSESSING OFFICER. 6 . HAVING HEARD THE RIVAL CONTENTIONS, WE ARE OF THE VIEW THAT THE ORDERS PASSED BY THE LEARNED CIT(A) DOES NOT CALL FOR ANY INTERFERENCE , SINCE HIS VIEW HAS ALREADY BEEN UPHELD BY THE COORDINATE BENCH OF THE TRIBUNAL IN ASSESSEES OWN CASE IN THE PROCEEDINGS RELATED TO SECTION 201(1) OF THE ACT A ND FURTHER M/S. CLEAR TRIP TRAVEL PVT. LTD. 3 SUPPORTED BY THE DECISION RENDERED BY HON'BLE DELHI HIGH COURT IN THE CASE OF JDS APPARELS PVT. LTD. (SUPRA). ACCORDINGLY WE CONFIRM THE ORDERS PASSED BY LD CIT(A) IN BOTH THE YEARS. 7 . IN THE RESULT, BOTH THE APPEALS FILED BY THE REVENUE ARE DISMISSED. ORDER HAS BE EN PRONOUNCED IN THE COURT ON 15 .1 1 .2016 SD/ - SD/ - (PAWAN SINGH) (B.R.BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED : 1 5 / 1 1 / 20 1 6 COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. BY ORDER, //TRUE COPY// ( DY./ASSTT. REGISTRAR) ITAT, MUMBAI PS