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2010 (7) TMI 720 - ITAT MUMBAIApplicability of 194J on leaseline charges and VSAT charges Held that:-Reimbursement of the expenses incurred by the Stock Exchange in lieu of infrastructure and trading facilities provided by the Exchange to the Members, will not be liable for tax deduction under Section 194J.The transaction charges paid by a Member to the Stock Exchange on the basis of the volume of transactions is a payment for the use of the facilities provided by the Stock Exchange and not for any services, either technical or managerial, and therefore the provisions of section 194J and consequently section 40(a)(ia) are not attracted. In case of CIT vs Bharti Cellular 2008 -TMI - 75309 - DELHI HIGH COURT went on to observe that the expression “technical services” would have reference to only technical services rendered by a human being but would not include any services provided by machines or robots. Applicability of 194C -Agreement of Jobbers and assessee was that of co-sharers of profit-Held That:-Were separate joint ventures entered into by the assessee and agreement between Jobbers and assessee is on principal to principal basis and in these circumstances the provisions of section 194C are not attracted because in essence and substance the amounts paid to the jobbers or arbitragers did not in reality represent the expense of the assessee company but represented payment of the share of the jobbers / arbitragers under the agreement entered into with them. In such a case the assessee is right in saying that there was no question of deducting any tax at source.
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