Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (6) TMI 380 - AT - Income TaxTDS U/s 194-J OR 194C - Services for annual maintenance of sophisticated medical equipments - Installation of machinery, AC system fitting for dialysis, ACC system installation and Air conditioner - CIT(A) deleted interest charged u/s 201(1)A - Held that:- The nature of work involves repairing, maintenance etc. which is part of work contract. Therefore, the same will not fall in the category of professional or technical services. Further, it is noticed that though the work involved is of specialization, still as the AO has failed to bring on record any evidence which shows that technical services received enhanced the knowledge of the appellant, these will also not be charged u/s 194J. Rendering of services by using technical knowledge or skill is different than charging fees for technical services. Where the services of technically qualified person were rendered only for maintaining machinery but that knowledge did not vest in the assessee so that assessee itself could make use of it, the amount cannot be considered as fees for technical services within the meaning of section 194J. See DCIT v Parasrampuria Synthetics Ltd [2007 (11) TMI 436 - ITAT DELHI]. Thus the appellant has rightly deducted tax at source u/s 194C. Charging of interest u/s 201(1A) on short deduction of various contract payments - Held that:- CIT(A) has given cogent reasons for coming to the conclusion that the nature of job & as these transactions are held to be not subjected to the provisions of section 194J, there will not be any question of charging of interest u/s 201(1A). Therefore, the interest charged u/s 201(1A) will also have to be cancelled. Accordingly the A.O. is directed to cancel the demand raised on this account as well.
|