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2014 (11) TMI 440 - AT - Income TaxTDS u/s 194I or u/s 194J - nature of transmission charges paid for use of transmission lines or other infrastructure - whether in the nature of rent - Held that:- Following the decision in Maharashtra State Electricity Distribution Co. Ltd. Versus Deputy Commissioner of Income Tax TDS Range-2 [2012 (8) TMI 519 - ITAT, MUMBAI] - in a situation in which the payment in made for the use of an asset simpliciter, whether with control and possession in its legal sense or not, the payment could be said to be for the use of an asset - However, in a situation in which the payment is made only for the purpose a specific act, i.e. power transmission in this case, and even an asset is used in the said process, the payment cannot be said to be for the use of an asset - When control of the as set (transmission lines in the present case) always remains with the PGCIL, any payment made to the PGCIL for transmission of power on the transmission lines and infrastructure owned controlled and in physical possession of PGCIL can be said to have been made for "the use of' these transmission lines or other related infrastructure - section 194-I has no application so far as the impugned payments for transmission of electricity is concerned - the payments made to above companies cannot be considered as rent under the provisions of section 194I of the Act, consequently, there is no question of levy of interest u/s 201 and 201(IA) of the Act – the order of the CIT(A) is upheld – Decided against revenue.
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