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2018 (9) TMI 360 - BOMBAY HIGH COURTTDS u/s 194L/194LA - cost of construction incurred by the assessee is the consideration paid for acquiring such rights, interest and titles from such squatters/hutments - whether consideration given by assessee to such squatters/ hutments was not in the nature of 'compulsory acquisition of land/ structure'? - Held that:- For the purpose of implementing the scheme of the Government relating to road widening near the railway track, the assessee evacuated the illegal/unauthorized persons who were squatters/hutment dwellers. The fact of the matter was that the possession of these persons was unauthorized and illegal and they were not the owners of the land on which they had squatted / built their illegal hutments. In fact, they were trespassers. This being the case, there was no question of the land being acquired by the assessee. In fact the ITAT, and in our view correctly, came to the conclusion that the land always belonged to the State; it was encroached upon, which encroachment was removed by the assessee; and the encroaching squatters / hutment dwellers were rehabilitated. This being the case, we find that section 194L or section 194LA of the I.T. Act, 1961 had absolutely no application to the facts and circumstances of the present case. The squatters / hutment dwellers have absolutely no title in the land on which they squat or build their illegal and unauthorized hutments. This being the case, there is no question of there being any compulsory acquisition from them under any law either under the Land Acquisition Act, 1894 or any other enactments which permit compulsory acquisition of land TDS u/s 194C or 194J - short deduction of tds - payment of of maintenance contracts which relate to minor repairs, replacement of some spare parts, greasing of machinery etc. - Held that:- Assessee had made payments only in respect of maintenance contracts which relate to minor repairs, replacement of some spare parts, greasing of machinery etc. These services do not require any technical expertise, and therefore, could not be categorized as “technical services” as contemplated under section 194J of the I.T. Act, 1961. We must mention here that section 194J of the I.T. Act, 1961, deals with fees for professional or technical services. In contrast, section 194C of the I.T. Act, 1961 deals with payments to contractors. The assessee had correctly deducted TDS under the provisions of section 194C of the I.T. Act, 1961 and not as per the provisions of section 194J - Revenue appeal dismissed.
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