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2018 (10) TMI 859 - AT - Income TaxTDS u/s 194J - Non-deduction of TDS @ 10% on pollution control expenses payments made in the relevant accounting period - Held that:- This tribunal’s decision in Hindustan Aeronautics Ltd. vs. ITO [2008 (3) TMI 408 - ITAT BANGALORE-A] holds that subject-matter of the contract in these circumstances is of equipment purchase only. We take into account all the above narrated facts in light of foregoing judicial precedent to conclude that assessee had made the impugned payment for purchased of its air pollution control equipments which has been wrongly taken as fee for technical service requiring TDS deduction u/s 194J r.w.s 9(1)(vii) Explanation-2 of the Act. We accordingly direct the Assessing Officer to delete the impugned demand. The assessee succeeds in its former substantive ground. TDS u/s 194C in the nature of contractual payments - Held that:- Madhu Mehta vs. DCIT [2016 (4) TMI 524 - ITAT MUMBAI] mere reimbursement payments in the absence of any income or profit element embedded therein do not attract TDS liability. It has come on record that the AO had also not followed tribunal’s decision applying CBDT’s circular No.723 instead of Circular No.715 (supra) in violation of settled judicial discipline of binding precedents in absence of any judicial precedent to the contrary. We take into account all these facts and settled legal position in light of voluminous documentary evidence that the AO has erred in treating the instant taxpayer to be an assessee in default u/s 201(1) of the Act. We accordingly accept assessee’s latter substantive ground to reverse the Assessing Officer’s action in entirety.
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