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2017 (2) TMI 281 - AT - Income TaxTDS u/s 194J or 194C - payments made towards various services rendered by M/s K12 Techno Services Pvt. Ltd. - difference between the TDS deducted and the TDS that ought to have been deducted - assessee in default - Held that:- We find that M/s K12 Techno Services Pvt. Ltd, has rendered various services to the assessee for the efficient and effective running of the educational institution. The services rendered by M/s K12 Techno Services Pvt. Ltd. are distinguishable from each other and though the recipient of all the payments is a single party, the nature of the services are discernible and different. If the contention of the Revenue was to be accepted, then why should the TDS be deducted u/s 194J and not u/s 194C for all the payments treating the entire agreement as a work contract?. When the basket of services is filled with different and distinguishable services, we are of the opinion that the assessee was correct in adopting different rates of TDS for different types of payments. Even the CBDT circular relied upon by the Ld. DR provided that the all the payments cannot be covered under one section. Therefore, in our opinion, the Assessing Officer and CIT(A) have erred heard in holding that the assessee ought to have made TDS u/s 19J of the Act on the entire payment to M/s K12 Techno Services Private Limited. - Decided in favour of assessee
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