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| The Tax Publishers2020 TaxPub(DT) 0724 (Bom-HC) INCOME TAX ACT, 1961
Section 194H
Amount retained by a bank / credit card agency out of the sale consideration of tickets booked through credit cards is not covered under the definition of 'commission' or 'brokerage' given in Explanation (i) to section 194H and in such circumstances, assessee was not liable to deduct tax at source under section 194H in respect of this amount.
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Tax deduction at source - Under section 194H - Amount retained by bank for facilitating payments - Commission or brokerage
Issue arose under consideration as to whether Tribunal was justified in upholding the order of CIT(A) and holding that the amount retained by a bank / credit card agency out of the sale consideration through credit cards is not covered under the definition of 'commission or brokerage' given in the Explanation (i) to section 194H. Thus assessee was not liable to deduct tax at source under section 194H in respect of this amount. Held: Court in CIT v. Jet Airways (India) Ltd. ([ITA No. 628 of 2018 decided on 23-4-2019] : 2019 TaxPub(DT) 3276 (Bom-HC) had answered the question in favour of the assessee. This Court held that amount retained by a bank / credit card agency out of the sale consideration of tickets booked through credit cards is not covered under the definition of 'commission' or 'brokerage' given in Explanation (i) to section 194H and in such circumstances, assessee was not liable to deduct tax at source under section 194H in respect of this amount.
REFERRED : CIT v. Jet Airways (India) Ltd. ([ITA No. 628 of 2018 decided on 23-4-2019] : 2019 TaxPub(DT) 3276 (Bom-HC)
FAVOUR : In assessee's favour
A.Y. :
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