TMI Blog2010 (12) TMI 667X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee and VSNL/Airtel to carry our any work as envisaged in section 194C - There was only a commercial/technical arrangement under which the assessee connected its equipments/network with that of VSNL/Airtel to enable their customers to have the access to the data or information over the internet - Hence, the case of the assessee is also not covered by the provisions of section 194C of the Act. - ITA No. 628/Hyd/2009 - - - Dated:- 3-12-2010 - G.C. Gupta, Chandra Poojari, JJ. V. Srinivas, CIT, for the Appellant M.V.R. Prasad, Adv., for the Respondent ORDER Chandra Poojari: This appeal preferred by the Revenue is directed against the order of the CIT(A)-III, Hyderabad dated 4.3.2009 and pertains to the ay 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ical services' within the meaning of S.194J r/w Expln. 2 cl.(vii) of S.9(1). As per provisions of S.194J of the Act (ii) there should be payment in the nature of fees and (ii) said should be for availing the technical services. Again expression 'technical service' has not been defined in S.194J but meaning given to the said expression has been adopted from Expln. 2 to cl. (vii) of S.9(1). The assessee has availed the bandwidth services and other infrastructure for providing the internet access to its customers. These are standard facilities availed by the assessee. The payment made by the assessee company to VSNL, MTNL and other concerns for availing the services of the bandwidth net work infrastructure cannot be said to be technical servic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tomers. The use of internet facility may require sophisticated equipment but but that does not mean that technical services were rendered by Teleglobe to the assessee. It was a simple case of purchase of internet bandwidth by the assessee from Teleglobe." 9. In view of the above decision, in our opinion, the service availed by the assessee from M/s. Bharati Info Airtel Ltd. and M/s Hathway Cable and Datacom Pvt. Ltd are not to be considered as technical services within the meaning of Section 9(i)(vii) read with explanation 2 and S.194J of the IT Act. The Tribunal while adjudicating the issue before them, they have carefully gone through similar issues which came for consideration in the following cases and came to the conclusion that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ithin the meaning of cl.(vii) if S.9(1) of the Act." Further the same view was expressed by Hyderabad Bench in the case of M/s. Bharati Cellular Ltd. by order dated 23.3.07 ITA.1233 to 1235/Hyd./04 12. In view of the above discussion, we are of the opinion that the payment made by the assessee for getting the services of internet access is not technical services, within the meaning of Expln.2 S. (9(1) (vii) of the IT Act read with read with 194J of the IT Act. Accordingly the grounds raised by the Revenue are dismissed." 4. Respectfully following the same ratio laid down in the above order of this Tribunal, we dismiss Ground No.1 taken by the Revenue. 5. Regarding ground No.2, that the assessing officer to invoke the provisi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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