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2015 (9) TMI 1100 - ITAT MUMBAINon deduction of TDS as per the provisions of section 194L/194LA - Held that:- First issue of payment of compensation vis-a-vis TDS under section 194L/194LA of the Act is concerned, the facts on the record show that to implement the scheme of the Government relating to the road widening near the railway tracks, the assessee evacuated the illegal/unauthorised persons in the form of squatters/hutments for which the assessee paid certain compensation to these persons. The fact of the matter is that these occupants were unauthorised and illegal, they were not the real owners of the land, therefore, there is no question of acquiring the land. The land always belonged to the State. It was only the encumbrance which was removed by the assessee by making payment of certain compensation. Therefore, we agree with the learned Commissioner of Income-tax (Appeals) that provisions of section 194L/194LA do not apply to the facts of the case. We confirm the findings of the learned Commissioner of Income-tax (Appeals) on this issue. The appeal filed by the Revenue on this issue is accordingly dismissed. - Decided against revenue. Assessing Officer has applied the provisions of section 194J whereas the assessee has deducted tax under section 194C of the Act - assessment years 2008-09 and 2009-10 - Held that:- We find that the payments have been made by the assessee only in respect of annual maintenance contract which relates to minor repairs, replacement of some spare parts, oiling and greasing of the machinery. In our understanding of the fact, these services do not require any technical expertise and therefore cannot be categorised under the head "Technical services". We, therefore, decline to interfere with the findings of the learned Commissioner of Income-tax (Appeals)deleting the demands of tax under section 201(1) and of interest under section 201(1A) . The appeal filed by the Revenue for this issue is also dismissed - Decided against revenue.
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