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2014 (7) TMI 991 - AT - Income TaxTDS u/s 194-I or u/s 194C - rental for the use of transmission line - Whether the present arrangement under the Bulk Power Transmission Agreement can be termed can be covered by the scope of expression any other agreement or arrangement 'for the use of' appearing in Explanation (i) to Section 194-I – Held that:- The assessee has no control over the operations of the transmission lines, and all that he gets from the arrangements is that he can draw the electrical power purchased from PGCIL's transmission lines in an agreed manner - relying upon Lakshmi Audio Visual Inc. v. Asstt. Commr. of Commercial Taxes [2001 (7) TMI 1253 - KARNATAKA HIGH COURT] - 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 –When control of the asset 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 payments for transmission of electricity is concerned – Decided against Revenue. Penalty u/s 271(1)(c) – Held that:- Addition in AY 2006-07 has been deleted by the tribunal - Therefore there is no liability upon the assessee to pay taxes on the additions made therefore, it cannot be asked to pay penalty equivalent to taxes sought to be evaded - once there are no taxes sought to be evaded then, there cannot be any penalty u/s 271 (1)(c) – CIT(A) has rightly held that no penalty is imposable upon the assessee because additions have already been deleted – Decided against Revenue.
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