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2012 (8) TMI 393 - AT - Income TaxTDS on VSAT charges - Held that:- It stands settled that ‘VSAT charges’ are not payment for technical services and same being paid by the assessee to Stock Exchange are merely reimbursement of the charges paid/payable by the Stock Exchange to the Department of Telecommunication. Since the VSAT charges paid do not have any element of income, deducting tax while making such payments do not arise - Decided against Revenue TDS on Transaction charges paid by the assessee to the stock exchanges - Held that:- Though section 194J was inserted w.e.f.July 1, 1995, till the AY in question that is the AY 2005-06 both the Revenue and the assessee proceeded on the footing that section 194J was not applicable to the payment of transaction charges. In these circumstances, if both the parties for nearly a decade proceeded on the footing that section 194J is not attracted, then in the AY in question, no fault can be found with the assessee in not deducting the tax at source u/s 194J and consequently, no action could be taken u/s 40(a)(ia). Therefore, to ascertain whether such bona fide was entertained in the earlier assessment, we remit issue back to file of AO with a direction to decide ‘bona fides of contention’ in this regard and to decide the issue afresh in the spirit of law in case of Kotak Securities (2011 (10) TMI 24 - BOMBAY HIGH COURT) - Decided in favor of Revenue for statistical purposes.
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