Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (10) TMI 2051 - AT - Income TaxNon deduction of TDS U/S 194J - payment made for hospitality services, doctor’s fees, annual maintenance contrary payment - revenue imposed tax u/s.201(1) and also charged interest u/s.201(1A) - AO did not accept assessee’s contention regarding its liability to deduct tax u/s.194C and held that the assessee was liable to deduct tax u/s.190J - Held that:- As decided in DCIT v. Parasrampuria Synthetics Ltd [2007 (11) TMI 436 - ITAT DELHI] the persons rendering certain services has only maintained machinery or converted yarn but that knowledge is not now vested with the assessee by which itself it can do research work. In the circumstances, the amount paid cannot be considered as fees for technical services within the meaning of section 194J of the Act. After holding the assessee in default, under various provisions of Section 194, the AO has passed order u/s.154, wherein he held that in view of the decision of Hindustan Coco-cola Beverage Pvt. Ltd. [2007 (8) TMI 12 - SUPREME COURT OF INDIA] since the recipient of income have already paid the tax, the AO has deleted the tax liability so imposed, however, he has confirmed the interest thereon. Thus, even during the appellate proceedings before the CIT(A) the AO has passed rectification order under section 154 and deleted all the liability created under Section 201(1) of the I.T.Act. - Decided in favour of assessee.
|