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2022 (1) TMI 1314 - AT - Income TaxTDS u/s 195 - amount paid towards refurbishment / reconstruction charges - non-deduction of TDS - addition u/s 40(a)(i) - As argued amount paid towards refurbishment / reconstruction is not in the nature of fee for technical services covered u/s.9(1)(vii) of the Act as refurbishment activity is in the nature of reconstruction / repair and accordingly no TDS is deductible on this expenditure - HELD THAT:- As evident that the assessee company is in the business of generation and sale of electricity. The assessee owns and operates a 330.5MW combined cycle power plant. To run this cycle power plant, the necessary machinery like gas turbine including spare parts viz., HGPS consisting of Combustor Baskets, Transition pieces, Fuel Nozzles, Turbine Static Blades and Turbine Moving Blades with each component having a pre- defined standard life based on Equivalent Operating Hours (EOH) is purchased. The process as explained above including the details of machinery, there is service agreement for refurbishment / repair of these machines entered with Marubeni Corporation, Japan. This refurbishment from the above facts is clear that is only repairs and services of machinery. Thus where discussion of AR as well as ld.senior DR, we are of the belief that payments for repairs are outside the scope of FTS and such payment do not constitute FTS u/s.9(1)(vii) of the Act. These are simple refurbishment or repairs and payment made for these do not attract TDS provision u/s.195 of the Act. Accordingly, we are of the view that this issue stands covered in favour of the assessee. Hence, the CIT(A) has rightly deleted the addition and we confirm the same. Therefore, the Revenue’s appeal is dismissed. Disallowing deduction u/s.80IA in respect of interest on bank deposits - interest on TRA deposits placed with the bank, as the same was a requirement of the financing document - HELD THAT:- We find that this issue is squarely covered by the Tribunal’s order in assessee’s own case for earlier assessment years 2006-07 to 2008-09 [2015 (5) TMI 1244 - ITAT CHENNAI] Therefore, taking a consistent view, we confirm the order of lower authorities and dismiss the cross objection filed by the assessee.
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