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| The Tax Publishers2021 TaxPub(DT) 2568 (Mum-Trib) INCOME TAX ACT, 1961
Section 194H
Following the decision in assessee's own case in DCIT v. Hotel Leela Venture Ltd. [ITA No.4990/Mum/2014, dt. 16-2-2016] disallowance under section 40(a)(ia) on the commission on credit cards to various bank for non-deduction of TDS could not be made.
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Tax deduction at source - Under section 194H - Assessee paid commission on credit cards to various banks -
Assessee was in the business of running five-star deluxe hotels. AO found that assessee paid commission on credit cards to various banks without deducting tax at source in terms of section 194H. AO disallowed the amount under section 40(a)(ia) on the reasoning that the amount paid being in nature of commission, was liable for deduction of tax at source as per section 194H. Held: As decided in assessee's own case DCIT v. Hotel Leela Venture Ltd. [ITA No.4990/Mum/2014, dt. 16-2-2016] CIT(A) deleted the disallowance made under section 40(a)(ia) read with section 194H. Therefore, following the same, disallowance under section 40(a)(ia) on the commission payment could not be made.
Followed:CIT v. JDS Apparels Private Limited 2015 TaxPub(DT) 0232 (Del-HC) Dy. C.I.T v. Hotel Leela Venture Ltd. [ITA.No.5825/MUM/2015, dt. 25-10-2017] and Dy. CIT v. Hotel Leela Venture Ltd. [ITA No.4990/Mum/2014, dt. 16-2-2016]
REFERRED :
FAVOUR : In assessee's favour
A.Y. : 2013-14
IN THE ITAT, MUMBAI BENCH
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