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2018 (12) TMI 107 - AT - Income TaxShort deduction under section 194D - service tax liability in the hands of the assessee, is not income of the agents and no TDS is liable to be deductible on the income - Held that:- As decided in the case of assessee itself [2016 (12) TMI 181 - ITAT MUMBAI] the amount of service tax on the insurance commission to life insurance agents is the liability of the appellant and the same cannot be considered as income in the hands of the agents. Hence, no tax is required to be deducted at source under Section 194D of the Act, on the service tax component. Accordingly, the demand of tax of ₹ 6,45,82,054/- (as rectified by the AO) u/s 201 (1) of the Act on account of non-deduction of tax at source u/s 194D of the Act on service tax component of the Insurance commission paid to/ credited in the name of Insurance agents is hereby directed to be deleted. TDS u/s 194C or 194J - nature of services received by the assessee by incurring outsourcing fee operation and record storage expenses as data sorting, scanning, retrieving of records, which requires certain parameters of technical/managerial skill and falls within the purview of section 194J or 194C - Held that:- As following the decision of coordinate bench on the similar facts we do not find any infirmity in the order of Ld. CIT(A) holding that annual maintenance charges paid by assessee was liable for deduction of tax at source under section 194C and not under section 194J TDS on payments of annual maintenance contract/routine repair - tds u/s 194J or 194C - Held that:- Assessing Officer while framing the order under section 201(1) of the Act held that the assessee is liable to deduct tax at source on payments of annual maintenance contract/routine repair under section 194J as the same was in the nature of technical services and thus, assessee wrongly deducted tax at source under section 194C whereas the learned CIT(A) followed the order of the Tribunal and also the decision in the case of RELIANCE LIFE INSURANCE CO. LTD. [2016 (5) TMI 1254 - ITAT MUMBAI]as deliberated upon by the Tribunal. No contrary decision was brought to our notice. Thus, following the decision of the co-ordinate Bench, we affirm the stand of the learned CIT(A), resulting into the dismissal of the appeal of the Revenue. So far as ground no.5 is concerned, it is general in nature requires no deliberation from our side. - Decided against revenue
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