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2015 (6) TMI 345 - AT - Income TaxNon deduction of TDS - whether Transmission charges, SLDC charges and wheeling charges amount availing of professional/technical services u/s 194J r.w. 9 (1)(vii)? - Held that:- Going through the relevant clauses of the agreement between the assessee and the RRVPNL and have found that there is no such clause in the agreement which prevents RRVPNL to allow any other power generating company to use transmitting lines. Rather, it is noticed that if any other neighbouring entity in Chanderi wished to use open access system of RRVPNL to transfer the power to another entity, it could very well do so. Charges for such utilization are given by the Rajasthan Regulatory Body and not controlled by the assessee company in any manner. Tarrifs are uniform for everyone using their infrastructure and the assessee company does not have any say in that matter. Accordingly, we are also of the opinion that the A.O/ITO-TDS was not justified in holding that the payment of transmission charges, wheeling charges and SLDC charges would attract the provisions of section 194J of the Act. Therefore, we approve the finding of the ld. CIT(A) in holding that the demands created u/s 201(1) of the Act in all these years and so also the related interest charged u/s 201(1A) would not survive and have been correctly deleted/cancelled by him. Accordingly, we dismiss all the four appeals of the revenue. - Decided in favour of assessee.
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