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2005 (12) TMI 217 - AT - Income TaxDeduction of TDS u/s 194J - Payment of port charges, access charges and interconnect charges to BSNL - HELD THAT:- In our considered view, the situation in the case of the assessee is not different from the situation before the Hon'ble Madras High Court in the case of Skycell Communications [2001 (2) TMI 57 - MADRAS HIGH COURT]. In the case before Hon'ble Madras High Court, the question was whether firms and companies subscribing to the cellular network are required to make TDS u/s 194J or not and whether the service provided by the cellular mobile telephone companies to its subscriber was technical services or not, and the Hon'ble Madras High Court held that it cannot be treated as fee for technical services. In the case before us, the assessee is providing service to its subscribers and certain calls are routed by making use of the network of BSNL and for that purpose, the call charges received by the assessee from its subscribers are shared with BSNL. In our view, the said service cannot be treated as technical service and the provisions of s. 194J are not applicable. The orders of the lower authorities are vacated. Since, we have held that the provisions of s. 194J are not applicable, we do not see any reason to deal with the alternative plea of the assessee. In the result, both the appeals of the assessee are allowed.
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