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2018 (12) TMI 451

nt argument. There is no dispute about the assessee having made the impugned payments in lieu of availing annual maintenance services from the payees in issue. It deducted TDS thereupon u/s 194C of the Act. The Revenue’s endeavour herein is that the payee(s) party had rendered technical service and therefore sec. 194J steps in. We notice in this backdrop of facts this tribunal’s decision in DCIT vs. Parasrampuria Synthetics [2007 (11) TMI 436 - ITAT DELHI] rejected Revenue’s similar substantive grievance seeking to treat contractual payments as fee for technical services - The person rendering certain services has only maintained machinery or converted yam but that knowledge is not now vested with the assessee by which itself it can do .....

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cord condonation petitions citing reasons thereof which are not dispute at assessee s behest. We therefore condone the impugned delay of three days filing in each of these cases. 3. We now advert merits involved in these cases. The Revenue s identical sole substantive ground pleads that CIT(A) has erred in law as well as on facts in reversing Assessing Officer s action treating annual maintenance contracts AMC payments made to various payees as fee for technical services. as follows:- 3. The AO' order u/s 201(1)/201(1A) has merely repeated general observation in respect of 17 payees. The AO's argument is that as expert or knowledgeable manpower was utilized the appellant is required to deduct TD u/s.194J. Thereby, the AO implies tha .....

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. 194J of the Act on assessee s payment made to various payees / persons since the AMC in question involved specialized knowledge in maintenance of its thermal power units. We find no merit in Revenue s instant argument. There is no dispute about the assessee having made the impugned payments in lieu of availing annual maintenance services from the payees in issue. It deducted TDS thereupon u/s 194C of the Act. The Revenue s endeavour herein is that the payee(s) party had rendered technical service and therefore sec. 194J steps in. We notice in this backdrop of facts this tribunal s decision in DCIT vs. Parasrampuria Synthetics ITA No. 1354/Del/2005 decided on 30.11.2007 rejected Revenue s similar substantive grievance seeking to treat cont .....

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s of this clause, 'fees for technical services' means any consideration (including any lump sum consideration) for the rendering of any managerial, technical or consultancy services (including the provision of services of technical or other personnel) but does not include consideration for any construction, assembly, mining or like project undertaken by the recipient chargeable under the head 'salaries '. " Hon'ble Madras High Court in the case of Skycell Communications Ltd. (supra) observed thus: "In the modem day world almost every facet of one's life is linked to science and technology inasmuch as numerous things used or relied upon in everyday life is the result of scientific and technological developme .....

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services to the consumer resulting in the consumer having to deduct tax at source on the payment made for power consumed and remit the same to the revenue. Installation and operation of sophisticated equipments with a view to earn income by allowing customers to avail of the benefit of the user of such equipment does not result in the provision of technical service to the customer for a fee. When a person decides to subscribe to a cellular telephone service in order to have the facility of being able to communicate with others he does not contract to receive a technical service. What he does agree to is to pay for the use of the airtime for which he pays a charge. The fact that the telephone service provider has installed sophistical techni .....

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le due to which the assessee acquired certain right which can be further used. In the present case, it is not so. The person rendering certain services has only maintained machinery or converted yam but that knowledge is not now vested with the assessee by which itself it can do research work. In the circumstances, the amount paid cannot be considered as fees for technical services within the meaning of section 194J of the Act. In the result, the appeal is dismissed. 5. We offered sufficient opportunities to the learned departmental representative for indicating any technical expertise to have been made available to the assessee payer forming sine qua non to invoke sec. 194J r.w.s. 9(1)(vii) of the Act. There is no such evidence forthcoming .....

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