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2017 (12) TMI 420 - AT - Income TaxTDS u/s 194J - Disallowance u/s 40(a)(ia) - ‘transaction charges’ paid by the assessee to the Stock exchange - whether ‘transaction charges’ not to be held as ‘fees for technical services’? - Held that:- We are of the considered view that after the judgment of the Hon’ble Supreme Court in the case of CIT Vs. Kotak Securities Limited. (2016 (3) TMI 1026 - SUPREME COURT), the issue as to whether ‘transaction charges’ fall within the sweep of ‘fees for technical services’, or not, had been settled once and for all and is no more found to be res integra. We find that the Hon’ble Apex Court deliberating at length on the issue under consideration, had therein concluded that ‘transaction charges’ being in the nature of charges paid by a stock broker for facilities provided by the Stock exchange, thus, the same cannot be characterised as ‘fees for technical services’ Thus, we are of the considered view that now when the ‘transaction charges’ paid by the assessee to the Stock exchange cannot be held as ‘fees for technical services’, therefore, no disallowance of the aforesaid amount would be called for in the hands of the assessee under Sec. 40(a)(ia). No disallowance under Sec. 40(a)(ia) of the ‘transaction charges’ was called for in the hands of the assessee.- Decided in favour of assessee.
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