2013 (6) TMI 597

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....es of u/s 40(a)(ia), without appreciating the facts that these were composite charges for professional and technical services rendered by the stock exchange to its members and the assessee has failed to deduct TDS thereon; (ii) On the facts and in the circumstances of the case and in law the ld. CIT(A) erred in ignoring the fact that these services are essential in nature as they can only be availed by members of Stock Exchange; (iii) On the facts and in the circumstances of the case and in law the ld. CIT(A) erred in ignoring the facts that use of technology and algorithmic based programs have converted an erstwhile physical market into a digitally operated market; (iv) On the facts and in the circumstances of the case and in law,....

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....e. 3. The assessee carried the matter before the Ld. CIT(A) and contended that the assessee is a SEBI registered share and stock broking company having membership of Bombay Stock Exchange. The assessee contended these charges have been incurred towards payment of lease line charges to BSE/MTNL/BSNL for use of lease liens provided by them for executing share transactions. The AO, under the wrong impression, held that the utility services provided were in the nature of fee for technical services and thus TDS against those payments should be deducted. Regarding the transaction charges of Rs.4,35,472/-, the assessee furnished relevant details pertaining to transaction charges at the time of assessment proceedings. It was contended that the p....

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....nge to the assessee, therefore, the provisions of section 194J were not attracted. Being aggrieved by this finding of the Ld. CIT(A), Revenue is before us. 5. The Ld. Departmental Representative supported the findings of the AO and ld. AR justified the order of the ld. CIT(A). He further submitted that the issue is covered by the decision of the ITAT, Mumbai and the decision of the Hon'ble Bombay High Court in the case of ITO V/s Angel Capital & Debit Market Ltd. In TA(L) 475 of 2011. 6. We have considered the rival submissions and perused the orders of the lower authorities. It is now well settled that no TDS liability is attracted so far as VSAT charges, Leaseline charges and other charges paid to BSE or NSE. This issue has been set....