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2016 (2) TMI 877 - AT - Income TaxTDS U/s 194J - sharing of fees - payments made by the appellant to ITGK for its share in RS-CIT course fees - Held that:- As decided in assessee’s own case for A.Y. 2009-10 to 2011-12 the uncontroverted fact which emerges from the record is to the effect that the payments in question were not made by assessee qua any service of professional or technical nature rendered to the payee. All the above entities by a valid collaboration, formed a business module on the revenue sharing basis for imparting computer education to Rajasthan Govt. employees and others. The services if any were provided to the students and the payee in question. The nature of internal distribution of revenue based on the mutual agreements can’t be held to be rendering of professional or technical services by any stretch of imagination. We find merit in the erudite contentions of ld. counsel for the assessee. Our view is reinforced by Hon’ble Delhi High court judgment in the case of Career Launchers [2012 (4) TMI 440 - DELHI HIGH COURT], the act of sharing of revenue in a multi entity business model cannot be held as contract payments and taking the logic further they cannot be held as payments on account of rendering of any professional or technical services as contemplated by Section 194J of the Act - Decided in favour of assessee
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