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2014 (6) TMI 542 - PUNJAB & HARYANA HIGH COURTInterpretation of Explanation 2 to section 9(1)(vii) of the Act – Scope of the term technical service - Liability to deduct TDS u/s 194J of the Act – Payment made for transmission/wheeling of SLDC – Liability to pay interest u/s 201(1A) of the Act - Whether any human intervention was involved in the activity or not - Held that:- Following Commissioner of Income-tax Versus Bharti Cellular Ltd. & Hutchison Essar Telecom Ltd. [2010 (8) TMI 332 - Supreme Court of India] - wherever there was human intervention requiring examination of technical data, the same would fall within the definition of technical services and in the absence – it would not partake the character of technical services – The primary basis to conclude the services to the falling u/s 194J of the Act to be technical services or not is to find as to whether any human intervention was involved in the activity or not - thus, the matter is remitted back to the AO to examine the technical expert and after examining him for fresh adjudication - the assessing authority shall also examine whether the Provisos inserted in Sections 201(1) and 201(1A) by Finance Act, 2012 are applicable retrospectively, as urged by the assessee – Decided in favour of Revenue.
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