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2015 (8) TMI 313 - AT - Income TaxDisallowance of depository charges paid u/s. 40(a)(ia) - Non deduction of TDS under Sec. 194C/194J - whether depository charges paid were for technical services? - Held that:- Tax Authorities had not disputed the fact that the assessee paid depository charges without deducting the tax and taxes are already paid by the recipient. Since the amount was already paid and the taxes are paid by the recipient, in our opinion, the decision of the Special Bench in the case of Marilyn Shipping & Transports ( 2012 (4) TMI 290 - ITAT VISAKHAPATNAM ) to hold that the Tax Authorities have wrongly invoked provisions of section 40(a)(ia) in the instant case. Suffice to say that disallowance made by the AO is not called for in the circumstances of the case, in the light of the decision of the ITAT (supra), which in turn was based upon the decision of Vector Shipping Services (P) Ltd.[2013 (7) TMI 622 - ALLAHABAD HIGH COURT] - Decided in favour of assessee.
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