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2015 (7) TMI 1321 - AT - Income TaxTDS u/s 194H - Non-deduction of tax on discounts extended to distributors of prepaid simcard / talktime - HELD THAT:- In TATA TELESERVICES LTD. VERSUS DEPUTY COMMISSIONER OF INCOME-TAX (TDS). CIRCLE 18(1). BANGALORE [2013 (1) TMI 480 - ITAT BANGALORE] held that Section 194H of the Act is not applicable in similar type of transactions and deleted the action of the AO treating the assessee as one in default. However this Tribunal being a sub-ordinate body to the Hon’ble jurisdictional High Court in the State of Karnataka, is bound by the judgment of Hon’ble jurisdictional Hgih Court and cannot give any directions beyond what has been given by the Hon’ble jurisdictional High Court in the case of Bharti Airtel Ltd [2014 (12) TMI 642 - KARNATAKA HIGH COURT]. Accordingly we are of the opinion that the matter requires a fresh look by the AO. We set aside the orders of the authorities below and remit the issue back to the file of AO for consideration afresh in accordance with the directions of the Hon’ble jurisdictional High Court in the case of Bharti Airtel Ltd (supra). Ordered accordingly. Ground 2 of the assessee for all the years are treated as allowed for statistical purposes. Non deducting tax at source u/s.194J - roaming charges paid to other telecom operators - whether roaming charges paid by assessee to other service providers for using their services by assessee’s customers could be treated as technical services falling u/s.194J - HELD THAT:- Reading of the above order clearly show that fact-situation was essentially similar to the one here in the case of the assessee. Assessee was also treated as one in default for failure to deduct tax at source on roaming charges paid to other distributors. Therefore the coordinate bench of the Tribunal in the case of Bharti Hexacom Ltd [2015 (7) TMI 175 - ITAT JAIPUR] would squarely apply as held these charges are not fees for rendering any technical services as envisaged in Section 194J of the Act. Therefore, we reverse the order of the ld CIT(A) and assessee’s appeal is allowed on this ground also.Also see VODAFONE ESSAR GUJARAT LIMITED AHMEDABAD VERSUS ASSISTANT COMMISSIONER OF INCOME TAX, TDS CIRCLE, AHMEDABAD [2015 (7) TMI 474 - ITAT AHMEDABAD] - Decided in favour of assessee. Levy of interest u/s.201(1A) - HELD THAT:- As lready held that assessee is not at default for deduction of tax on roaming charges and interest levied on the assessee on such amount u/s.201(1A) of the Act, stands deleted. However, in so far as interest u/s.201(1A) of the Act in relation to discounts / commission on prepaid sim cards and talk time is concerned, we have remitted the issue back to the file of the AO for consideration afresh
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