S. 194H

ITO(TDS) v Jet Airways (India) Ltd. [IT APPEAL NOS. 7439, 7440 & 7441 (MUM) OF 2010] dtd 26.06.13 Mumbai ITAT Background: The assessee is a company engaged in the business of aviation. A survey action u/s 133A of the Act was carried out. After survey, proceedings were initialed u/s 201(1)/201(1A) of the Act in connection with the applicability of TDS on amounts retained by the banks in respect of air tickets booked through credit cards. Assessee during the course of proceedings stated that provisions of section 194H of the Act are not applicable on the above mentioned amounts retained by the banks as the amounts retained by the banks is in the nature of discounting in consideration of immediate payment made by the banks to the assessee. 

No TDS u/s 194H on credit card charges paid to banks – Mum ITAT

ITO v Mittal Investment & Co. [IT Appeal No. 1951 (Delhi) of 2012] (Del ITAT) Background: The assessee, a partnership firm, was engaged in the business as agent of post office schemes, PPF, RBI Bonds, LIC, Mutual Funds etc. on commission basis.  The assessee had claimed expenses of Rs. 20,85,695/- on account of commission expenses. During the course of assessment proceedings, AO required the assessee to furnish complete details of commission paid with proof of TDS deducted and deposited on the commission so paid. Since, no TDS was deducted u/s 194H, the AO disallowed the commission u/s 40(a)(ia) for non deduction of tax.

TDS u/s 194H not applicable on sub-brokerage on securities – Del ITAT