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2013 (5) TMI 785 - AT - Income TaxDisallowance under section 40(a)(ia) - VSAT, transaction and lease line charges paid to the stock exchange - Non deduction of TDS - Held that:- Transaction charges paid by the assessee to stock exchange constitute fees for technical services under section 194J of the Act and, therefore, the assessee was liable to deduct tax at source while crediting the transaction charges to the account of stock exchange. - transaction charges paid to the stock exchange constitute fees for technical services on bona fide belief it was considered that the disallowance cannot be made in that year as the Revenue did not proceed on the footing that assessee is not liable to deduct the tax at source after introduction of the provisions. - there is no need to disturb the order of the Commissioner of Income-tax (Appeals) - no tax at source was required to be deducted by the assessee with regard to lease line charges and VSAT charges. - Matter remanded back this case to the file of the Assessing Officer to verify whether the return for the assessment year 2007-08 was filed by the assessee before the completion of assessment proceedings for the assessment year 2006-07 and whether the assessee was of the bona fide belief in view of assessment made for the earlier years, that it was not liable to deduct tax from transaction charges under section 194J and if found so, he will allow the deductions of the transaction charges accordingly - Following decision of Kotak Securities [2011 (10) TMI 24 - Bombay High Court], First Global Stockbroking Pvt. Ltd [2012 (9) TMI 913 - ITAT MUMBAI] and CIT v. DICGC Ltd. [2012 (4) TMI 240 - ITAT MUMBAI] - Decided partly in favour of assessee.
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