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2015 (1) TMI 236 - AT - Income TaxTDS u/s 194J - DATA link charges - networks interconnection - Technical or professional services - Held that:- In order to provide managerial, technical and consultancy services, the element of human involvement is necessary – where, there is provision for DATA link and inter-connection facilities, the user utilizes the technical equipments for inter-connection purposes only through technical equipment or gadgets used in the transmission process, but the same does not part take the nature of services of managerial, technical or consultancy nature - merely because, certain technical equipments or gadgets are made available for transmission of DATA link does not establish the case of the Revenue that such services are technical services provided by the service provider to the assessee, which are covered under the provisions of section 194J of the Act. The DATA link charges were paid for utilizing the standard facilities which were provided by the individual service providers by way of use of technical gadgets which were made available vide DATA link satellite link line established from one service provider to be carried over to the other service provider, does not involve technical services as there was only interconnection of the networks to the equipments of other service providers In the absence of any human intervention for transmitting the DATA through such DATA link satellite link line, the payments made for utilizing such services was not in the nature of technical services governed by section 194J of the Act – the order of the CIT(A) is reversed and DATA link charges is held to be not liable for tax deduction at source under the provisions of section 194J - since there was no requirement to deduct tax at source u/s 194J, there was no liability upon the assessee and there was no failure on part of assessee for non-deduction of tax at source and the assessee was not liable to pay interest u/s 201(1A) – Decided in favour of assessee.
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