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2015 (10) TMI 745 - AT - Income TaxLevy of interest on short deduction of tax u/s 201(1A) - Assessee had deducted TDS u/s. 194C on the amounts paid to A.P. Genco Ltd. for operation and maintenance of Plants - AO was of the opinion that assessee should have deducted tax u/s. 194J at 10% on O&M Charges - CIT(A) deleted the levy of interest - Held that:- Nothing was brought on record to counter the findings of Ld. CIT(A). As seen from the copy of the agreement placed on record along with decisions relied on by the Ld. Counsel, we agree with the findings of CIT(A) that A.P. Genco has undertaken the entire contract work for Operation and Maintenance of plants, equipments, amenities, fire fighting services etc., which is covered under the provisions of Section 194C and not by Section 194J. Ld. CIT(A) also analysed the issue keeping in mind the decision of coordinate bench of ITAT Ahmedabad in the case of Gujarat State Electricity Corporation Vs. ITO [2003 (5) TMI 190 - ITAT AHMEDABAD-C]. The payment made by the appellant for carrying out entire operation and maintenance of power plant cannot be treated as fees for professional/technical services, therefore, the liability of TDS is under 194C and not U/s. 194J. As the appellant had correctly deducted TDS U/s.194C, the question of levying interest U/s. 201(1A) does not arise - Decided against revenue.
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