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2019 (3) TMI 217 - AT - Income TaxTDS u/s 194J or 194C - roaming charges paid to other telecom companies - assessee in default u/s 201(1A)/201(1) - scope of human intervention - whether process involved in the roaming connectivity does not involve the human intervention and thus the services do not fall within the ambit of “technical services”? - HELD THAT:- It is common knowledge that when one of the subscribers in the assessee’s circle travels to the jurisdiction of another circle, the calls get connected automatically without any human intervention and it is for this, the roaming charges is paid by the assessee to the visiting operator for providing this service. The interconnection charges paid by the appellant to other telecom operators are therefore, not in the nature of fees for technical services and therefore there is no liability to deduct tax thereon. CIT-vs-Vodafone South Ltd. [2016 (8) TMI 422 - KARNATAKA HIGH COURT] held that the process involved in the roaming connectivity does not involve the human intervention and thus the services do not fall within the ambit of “technical services”. CIT(A) while allowing the claim of the applicant in deleting the demand raised u/s 194J for A.Y. 2008-09 & 2009-10 respectively with the conclusion that the roaming charges paid by the appellant to other telecom companies are not covered under ‘fee for technical service’ and such payments are out of the purview of TDS provision of 194J. We find no infirmity in the order passed by the Learned CIT(A). We, therefore, do not hesitate to confirm the same. - Decided against revenue.
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