TMI Blog2015 (10) TMI 745X X X X Extracts X X X X X X X X Extracts X X X X ..... plants, equipments, amenities, fire fighting services etc., which is covered under the provisions of Section 194C and not by Section 194J. Ld. CIT(A) also analysed the issue keeping in mind the decision of coordinate bench of ITAT Ahmedabad in the case of Gujarat State Electricity Corporation Vs. ITO [2003 (5) TMI 190 - ITAT AHMEDABAD-C]. The payment made by the appellant for carrying out entire operation and maintenance of power plant cannot be treated as fees for professional/technical services, therefore, the liability of TDS is under 194C and not U/s. 194J. As the appellant had correctly deducted TDS U/s.194C, the question of levying interest U/s. 201(1A) does not arise - Decided against revenue. - ITA No. 674/HYD/2015 - - - Dated: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... U/s. 194J. b. As per clauses of agreement, there are different types of paymsents for different purposes. Therefore, the entire payment cannot be categorized as the payment for contract work. c. The assessee s reliance on the decision of ITAT, Ahmadabad Bench, in the case of Gujarat State Electricity Corporation Vs. ITO 82 TTJ 456, can be distinguished on the facts . 4. Before the CIT(A) it was explained that: a. That appellant company is engaged in the business of generation and sale of power for which it had set up its power plants. O M of such power plants was entrusted to AP Genco by virtue of a contract dated 25.03.2006. b. All the payments made towards O M of power plant being contract of work, TDS is liable U ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hemicals, materials, etc. Engineering and documentation archive management Personnel Administration Budgeting, cost control and accounting Settlement of insurance claims Security, liaison and public relations Maintenance of green belt Maintenance of company owned vehicles Maintenance of quarters Maintenance of equipment/system not specifically covered in the above items. From the careful reading of the agreement one can understand that, through this contract the appellant had given the complete operation and maintenance of the power plant at Vijjeswaram to AP Genco. It is not a case where services were provided in certain technical aspect. The agreement is for complete oper ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of entire operation and maintenance of power plants undertaken by the GEB. Such payment would come within the limb of exclusionary part, viz. consideration for like project excluded in the definition of fees for technical services given in Explanation 2 to section 9(1)(vii) of the Act. Such payment cannot also be treated as payment of fees for professional services as contemplated in section 194J. The agreement executed between appellant-company and GEB is not an agreement simpliciter for acquiring technical services or professional services from them but it is an agreement requiring GEB to execute the work contract of operating and maintaining the mega power project. Such a contract will come within the ambit and scope of section ..... X X X X Extracts X X X X X X X X Extracts X X X X
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