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2018 (12) TMI 451 - AT - Income TaxTDS u/s 194J OR 194C - treating annual maintenance contracts “AMC” payments made to various payees as fee for technical services - TDS liability - Held that:- We find no merit in Revenue’s instant argument. There is no dispute about the assessee having made the impugned payments in lieu of availing annual maintenance services from the payees in issue. It deducted TDS thereupon u/s 194C of the Act. The Revenue’s endeavour herein is that the payee(s) party had rendered technical service and therefore sec. 194J steps in. We notice in this backdrop of facts this tribunal’s decision in DCIT vs. Parasrampuria Synthetics [2007 (11) TMI 436 - ITAT DELHI] rejected Revenue’s similar substantive grievance seeking to treat contractual payments as fee for technical services The person rendering certain services has only maintained machinery or converted yam but that knowledge is not now vested with the assessee by which itself it can do research work. In the circumstances, the amount paid cannot be considered as fees for technical services within the meaning of section 194J. We offered sufficient opportunities to the learned departmental representative for indicating any technical expertise to have been made available to the assessee payer forming sine qua non to invoke sec. 194J r.w.s. 9(1)(vii) of the Act. There is no such evidence forthcoming from the case file. We therefore follow the above referred co-ordinate bench’s decision to affirm the CIT(A)’s findings under challenge in all three instant case(s). - decided against revenue.
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