2018 (6) TMI 1736 - AT - Income Tax

TDS u/s 194J - TDS on discount and roaming charges - default u/s 201(1) - HELD THAT - As decided in own case 2018 (5) TMI 582 - ITAT DELHI in absence of any human intervention during the actual roaming process payment would not be Fees for Technical services - Thus payment made to other telecom operators should not be regarded as payment towards fees for technical service. No Tds liability - Decided in favour of assessee.

Summary

Issues involved: Appeal against CIT(A) order regarding treatment of assessee in default under section 201(1) of the Income-tax Act, 1961 for assessment year 2011-12.

Analysis:
1. The appeal filed by the Revenue challenged the order of the Commissioner of Income Tax (Appeals) regarding the treatment of the assessee in default under section 201(1) of the Income-tax Act, 1961 for the assessment year 2011-12.
2. The Revenue contended that the CIT(A) erred in not treating the assessee in default within the provisions of section 201(1) of the Act.
3. The assessee argued that the issue was already decided in their favor by the Tribunal in their own case for the assessment year 2010-11.
4. The Tribunal noted that the Revenue failed to provide any distinguishing decision in their favor.
5. The Tribunal examined the orders of the lower authorities and found merit in the contention of the assessee. The Tribunal referred to a previous decision of the co-ordinate bench where it was held that the appeal of the Revenue became infructuous due to the absence of any TDS liability.
6. Following the findings of the co-ordinate bench, the Tribunal declined to interfere and dismissed the grounds raised by the Revenue.
7. Consequently, the appeal of the assessee was dismissed, and the order was pronounced in open court on 11.06.2018.