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2018 (4) TMI 931 - AT - Income TaxTDS u/s 194J - disallowance of Data Circuit / Broadband / Multi-Protocol Label Switching (“MPLS”) charges under section 40(a)(ia) for non deduction of tds - Held that:- As decided in assessee's own case for A.Y.2010-11 [2016 (2) TMI 1164 - ITAT MUMBAI] as held merely because for maintenance purpose certain human intervention was provided, cannot lead to the surmise that the DATA link charges paid to various telecom service providers, were in the nature of technical services governed by the provisions of section 194J - DATA link charges were paid for utilizing the standard facilities which were provided by the individual service providers by way of use of technical gadgets which were made available vide DATA link satellite link line established from one service provider to be carried over to the other service provider, does not involve technical services as there was only interconnection of the networks to the equipments of other service providers. In the absence of any human intervention for transmitting the DATA through such DATA link satellite link line, the payments made for utilizing such services was not in the nature of technical services governed by section 194J - Decided in favour of assessee Disallowance of net enhancement and customization expenses (after allowing depreciation at the rate of 60%) - Held that:- As per our considered view, as technology keeps evolving, no enduring benefit arises and thus payments made for application software are revenue in nature. No merit for the disallowance of net enhancement and customization expenses.- Decided in favour of assessee Disallowance of net repairs and maintenance expenses after allowing depreciation at the rate of 10% - Held that:- After going through the nature of expenditure incurred on repairs and maintenance, we found that same is revenue in nature. No merit for the disallowance so made by the AO on account of repairs and maintenance. Disallowance made on account of lease rent expenses - Held that:- The issue is squarely covered by the order of the Tribunal in assessee’s own case for the A.Y.2010-11 as held at by following AS-19 the assessee has complied with the provisions of the Act, that AS-19 provides that in case of operating leases, the lease rent payment has to be treated as an allowable expenditure
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