The issue that arose before the High Court was as under:
Whether ‘commission’ paid to bank on payments received from customers via credit cards could be treated as a commission or brokerage under section 194H so as to attract TDS?
The High Court held in favour of assessee as under:
1)The intention of the legislature behind introducing the provisions of section 194H was to include commission or brokerage within its ambit when a third person interacts between the seller and the buyer as an agent and, thereby, renders services in the course of buying and/or selling of goods
. 2)In the instant case, bank was providing services to its client (i.e., trader) which could not be treated as services rendered by an agent during course of buying or selling of goods as banker does not render any service in nature of agency.
3)Thus, the amount charged by bank was a fee for rendering banking services to its client and same could not be treated as a commission or brokerage under section 194H for the purposes of TDS. - CIT V. JDS APPARELS (P.) LTD.  53 taxmann.com 139 (Delhi)