TMI Blog2008 (3) TMI 327X X X X Extracts X X X X X X X X Extracts X X X X ..... ing to the Assessing Officer, the assessee was liable to deduct tax at source from the payments made to the US party. - Assessing Officer invoked the provisions of section 9(1) (i) and section 9(1)(vii) - It was a simple case of payment for the provision a bandwidth. - Tribunal rightly came to the conclusion that there were no technical services provided by Teleglobe to the assessee and, therefor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amount is paid to the US party, that is, M/s Teleglobe International Corporation (for short "Teleglobe"). 3. According to the Assessing Officer, the assessee was liable to deduct tax at source from the payments made to the US party. For arriving at this conclusion, the Assessing Officer invoked the provisions of section 9(1) (i) and section 9(1)(vii) of the Income-tax Act, 1961. Feeling aggri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red the agreement that had been entered into by the assessee with Teleglobe and came to the conclusion that there was no privity of contract between the customers of the assessee and Teleglobe. In fact, the assessee was merely paying for an internet bandwidth to Teleglobe and then selling it to its customers. The use of internet facility may require sophisticated equipment but that does not mean t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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