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2014 (11) TMI 10 - AT - Income TaxAmount paid covered u/s 194J or not - Compliance of TDS provisions - Business of rendering various telecommunication services including landline and internet services - Whether the payment made by the assessee company to M/s. Records and Data Warehousing Pvt. Ltd. for the services rendered in pursuance of the Master Services Agreement is in the nature of payment to contractor as envisaged in S.194C or fee for technical services as covered by S.194J or not - Held that:- The amount was paid by the assessee company to M/s. Records and Data Warehousing Pvt. Ltd. for the services rendered in pursuance of a Master Services Agreement executed on 8th September, 2009 - services provider M/s. Records and Data Warehousing Pvt. Ltd. has necessary infrastructure, manpower and experience in providing world class record management services and it has base financial capabilities to perform the record management and related services. Following the decision in Commissioner of Income-tax Versus Bharti Cellular Ltd. & Hutchison Essar Telecom Ltd. [2010 (8) TMI 332 - Supreme Court of India] the expression appearing in S.194J has the same meaning as given in Explanation (2) to S.9(1)(vii), which means any consideration for rendering of any ‘managerial, technical or consultancy services’ - the rule of noscitur a sociis is clearly applicable and this would mean that the word ‘technical’ would take colour from the words ‘managerial’ and ‘consultancy’ in between which it is sandwiched - Elaborating further, Hon'ble Delhi High Court observed that it is obvious that the expression ‘manager’ and consequently ‘managerial service’ has a definite human element attached to it and similarly, the services ‘consultancy’ also necessarily intends human intervention - the expression ‘fee for technical services’, as appearing in S.194J, they found that the question of human intervention was never raised even upto the level of the Tribunal – thus, the order is remitted back to the AO for fresh adjudication – Decided in favour of assessee.
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