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2011 (11) TMI 77 - AT - Income TaxTransmission / wheeling charges - TDS u/s 194I - Assessing Officer concluded that the transmission charges/wheeling charges were paid by GRIDCO to OPTCL towards use of equipments for transfer of power from the generators to the DISTCOMs, which attracted liability under Section 194-I of the Income-tax Act, 1961. - Held that:- the assessee has never used the equipments of transmission lines of OPTCL but it has only asked the OPTCL to transmit power from generator to DISCOMs by using the services of OPTCL, the assessee has not used the transmission lines which are the assets of OPTCL as per its form notified in the gazette. The learned AR of the assessee has also argued on the issue of applicability of Section 194J and 194C on the transmission charges. But the Assessing Officer has invoked the provisions of Section 194-I only for making the disputed disallowance and therefore, we have not adverted to the issue of applicability of Section194J or Section 194C. Since section 194-I is not applicable in respect of transmission charges, no disallowance can be made u/s.40(a)(ia).
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