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2016 (10) TMI 496 - ITAT HYDERABADTDS u/s 194J - TDS on ‘settlement and custody’ fees paid to NSDL/CDSL - human intervention - Held that:- There is no human element and services are fully automated. Moreover, there is no exclusivity and the NSDL/CDSL renders service to many other clients. Since the facts are similar to the facts in the case of Kotak Securities Ltd [2016 (3) TMI 1026 - SUPREME COURT ], we are of the opinion that ‘settlement and custody’ fees paid to NSDL/CDSL are not covered by the provisions of Section 194J, as they cannot be considered as ‘technical services’. Consequently, there can not be any disallowance on the reason that TDS was not made, u/s 40(a)(ia). Moreover, these companies have also treated these amounts as ‘incomes’ and offered to tax. The amendment brought to provisions of Section 40(a)(ia) do apply to the facts as well. In view of these reasons the disallowance made u/s. 40(a)(ia) is hereby deleted. - Decided in favour of assessee
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