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2008 (12) TMI 429 - AT - Income TaxTDS u/s 194J - Whether the services are facilities availed by the assessee from VSNL/MTNL and other concerns towards bandwidth and net work operating infrastructure can be said to be ‘technical services’ u/s 194J r/w Explanation 2 to clause (vii) of section 9(1)? - AO passed order u/s 201(1) and 201(1A) - HELD THAT:- In this case, the assessee has availed the bandwidth services and other infrastructure for providing the internet net excess to its customers. These are standard facilities availed by the assessee. Moreover, in our opinion the assessee’s case is covered by the decision of the Hon’ble Delhi High Court in the case of Estel Communications (P.) Ltd.[2008 (3) TMI 327 - DELHI HIGH COURT]. We, therefore, hold that the payment made by the assessee-company to VSNL, MTNL and other concerns for availing the services of the bandwidth net work infrastructure cannot be said to be technical services within the meaning of section 194J of the Act r/w Explanation 2 to clause (vii) of section 9(1) of the Act. We, therefore, allow the appeals filed by the assessee and cancel the order passed by AO u/s 201(1) and 201(1A) of the Act.
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