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2018 (3) TMI 1080 - AT - Income TaxTDS u/s 194J - disallowance u/s 40(a)(ia) for non-deduction of tax on payment of transmission and wheeling charges - Held that:- Disallowance under Section 40(a)(ia) for non-deduction of tax on payment of transmission charges the same is covered in favour of the assessee by the decision of the Tribunal in assessee’s own case [2017 (12) TMI 911 - ITAT DELHI] as held AO has completely failed to bring relevant materials, whatsoever, on record to prove the existence of human interface/element in the present case. Thus such transmission and wheeling charges paid by the assessee does not come within the purview of fees for technical service as defined under Explanation 2 to sec 9(1)(vii) of the Act and accordingly no tax is required to be deducted by the assessee u/s. 194J therefrom. Hon’ble Delhi High Court in case of CIT vs. Delhi Transco Ltd. (2015 (8) TMI 378 - DELHI HIGH COURT) considering the provisions of section 194J of the Act held that wheeling charges paid for transportation of electricity cannot be characterized as fee for technical service - Decided in favour of assessee
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