TaxTMI 
TaxTMI 
2013 (5) TMI 557
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....to add, alter or amend any of the grounds of appeal at the time of hearing." 2. The relevant facts of case are that the assessee company formerly known as Hughes Software Systems Ltd at the assessment stage and at the time of filing of the appeal before the assessee and by the department, the name of M/s Aricent Technologies {Holding} Ltd., (Erstwhile Hughes Software Systems Ltd.), 5, Jain Mandir Marg (Annexe), Connaught Place, New Delhi. 3. The assessee as per material available on record, was engaged in the business of software development of products and providing software services in India and overseas. The assessee was subjected to a survey u/s 133A at the office premises on 16.11.2004 in order to verify whether the assessee had deducted and deposited TDS in government account or not. The assessee in the present proceedings was treated as "assessee in default" u/s 201(1) of the Income Tax Act vide order dated 31.03.2009 of ACIT, Circle-50(1), New Delhi in response of :- (i) Non-deduction of tax source u/s 192 of the Act in respect of non-inclusion of performance incentive for the purposes of calculating exemption u/s 10(13A) of the Act; and (ii) Nondeduction of TDS u/s 1....
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....nical services" shall have the same meaning as contained in Explanation2 to clause (vii) of section 9(1) of the Act. Right from 1979, various judgements of the High Courts and Tribunals have taken the view that the words "technical services" have got to be read in the narrower sense by applying the rule of Nosciture a sociis, particularly, because the words "technical services" in section 9(1)(vii) read with Explanation 2 comes in between the words "managerial and consultancy services". The Supreme court in that case further observed that, to decide the matter, it needs to be examined, whether at any stage, inter alia, any human intervention is involved. The Supreme Court accordingly directed the assessing officer to examine by a technical expert from the side of the department to determine whether the impugned telecom services involved any human intervention. 4.9. In the case of the appellant, payment, in question, are purely for obtaining telecom connectivity which are provided by the telecom service provider through equipment without any human interface or intervention and consequently, the payment cannot be characterized as "fee for technical services" as per th....
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....facility provided for inter-connection, port access comes under the ambit of technical services within the meaning of section 194J of the Income Tax Act as technical services. Accordingly, the amount paid for telephone expenses link and telephone expenses BPO link for the FYs 2003-04 & 2004-05, it has been held comes in the ambit of technical services u/s 194J of Act on which on account of the default of non-deduction of tax u/s 201 & 201(A) was calculated. 7. Ld. AR, on the other hand, inviting attention to section 192(1) of the Income Tax Act contended that the duty cast upon the employer in regard to deduction at source at the time of payment of salary is to be worked out on the amount payable at the average rate of income tax computed on the basis of rate applicable of the said year on the "estimated income of the assessee under this head". For ready reference, we reproduce the relevant portion of the section :- "Any person responsible for paying any income chargeable under the head "Salaries" shall, at the time of payment, deduct income-tax on the amount payable at the average rate of income tax computed on the basis of the [rates in force] for the financial year in whic....
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....Court in Maruti Udyog Ltd. was dismissed. 9. Inviting attention to another judgement of the Jurisdictional High Court in the case of CIT vs Delhi Public School 203 Taxman 81 (Del.) placed at page 11-14 of the paper book. It was further submitted that their Lordships have held that where the employer had deducted TDS on estimated income of the employee and such an estimate is found to be not incorrect then this fact alone cannot make an employer an assessee in default u/s 201(1) unless it can be reasonably inferred that the employer has not acted honestly and fairly while deducting TDS from the employee's income. 10. We have heard the rival submissions and perused the material available on record. On a careful consideration of the same, we are of the view that in the facts and circumstances of the present case, the action of the CIT(A) cannot be faulted with the same is well supported by the legal position as considered by the judgements of the Jurisdictional High Court. Although, the Ld. AR has relied on the merits of the case also and the impugned order proceeds with a finding on merit. However, taking into consideration, the principle laid down consistently by the Jurisdict....