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2013 (5) TMI 446 - AT - Income TaxDisallowance of transaction charges - addition u/s 40(a)(ia) - CIT(A) deleted the addition - Held that:- As decided in Kotak Securities Ltd. case [2011 (10) TMI 24 - Bombay High Court] Payment regarding transactions charges are in the nature of the payment for technical services and liable to TDS however held that the assessee had bonafide reason to believe that tax was not deductible at source from the payment of transaction charges under section 194J. Prior to this decision this Tribunal has been taking the view that the payments of transaction charges are not subjected to TDS u/s 194J. Even the revenue was also proceedings with a view that no TDS is deductible in respect of payment of transaction charges prior to the assessment year 2006-07. Further, when the issue has been decided in favour of the assessee by the Tribunal for the AY 2006-07, then no doubt about the bonafide of the claim of the assessee under belief that no tax at source was required to be deducted u/s 194J. Further, it is to be noted that the assessee filed its return of income for the year under consideration on 24.10.2007 and even till the said date, no disallowance was made by the revenue u/s 40(a)(ia) in respect of transaction charges paid because the assessment order for the AY 2006-07 was passed on 22.12.2008. Thus as that first time the AO has disallowed the transaction charges by invoking the provisions of sec. 40(a)(ia) while passing the assessment order for Assessment Year 2006-07 on 22.12.2008. Therefore, no reason to interfere with the impugned order of the CIT(A) on this issue for the year under consideration. The claim of bonafide is accepted only for the year under consideration and shall have no bearing on future years - Against revenue.
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