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2014 (10) TMI 499 - AT - Income TaxCargo handling charges to be taxed u/s 194J @ 5% or u/s 194 @ 2% - Held that:- Following the decision in Glaxo Smithkline Consumer Healthcare Ltd. Versus Income-tax Officer, Ward 49(3), New Delhi [2006 (10) TMI 259 - ITAT DELHI] – the services are also clearly not in the nature of technical, consultancy or managerial services, therefore, tax in respect of these services are not to be deductible u/s 194J of the Act - CBDT in its Circular No. 720, dated 30-8-1995 had also provided that various provisions of Chapter XVII relating to deduction of tax at sources are mutually exclusive and that Chapter XVII deals with a particular kind of payment to the exclusion of all other sections in this Chapter - any payment of any sum shall be liable for deduction of tax only under one section, therefore, payment is also liable for tax deduction only under one section, as warranted by the nature of services. Combined reading of provisions of sections 194C and 194J vis-a-vis CBDT Circular No. 720 makes it abundantly clear that in the instant case payment made by the assessee to the C&F Agents, was for the services which was pre-dominantly for "carrying out work", inter alia, relating to storage dispatch, transportation, loading and unloading of goods, etc. - Thus, the assessee has rightly deducted tax at source under section 194C of the Act - assessee was not in default for deduction of tax as per provisions of section 194C at the rate of 2 per cent and that lower authorities were not justified for treating the services rendered to the assessee as falling under section 194J of the Act and thereby liable for deduction of tax at 5% - the decision taken by the CIT (A) in deleting the demand of tax u/s 201(1) of the Act in respect of Cargo Handling Charges is fair and reasonable and it does not call for any interference – Decided against revenue.
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