2015 (10) TMI 745

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....peration and Maintenance Charges of Rs. 11,07,26,520/- and Repairs and Maintenance of Plant & Machinery of Rs. 9,44,32,957/-. In the course of verification of TDS, AO found out that assessee had entered into an agreement with A.P. Genco Ltd., on 25-03-2006 for operation and maintenance of Plants. Assessee had deducted TDS u/s. 194C on the amounts paid to A.P. Genco Ltd. AO was of the opinion that assessee should have deducted tax u/s. 194J at 10% on O&M Charges. Since A.P. Genco to whom the payments were made had already paid taxes on O&M Charges received by it, demand U/s. 201(1) was not raised, but interest U/s. 201(1A) was levied to an extent of Rs. 4,73,189/-. 3. AO considered the O&M Charges as technical services rendered by A.P. Genc....

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....y stating as under: "6. The information on record is carefully considered. The agreement for operation and maintenance of 272 MW Gas Turbo Power Station, Vijjeswaram, entered between the appellant and AP Genco vide agreement dated 25.03.2006 was carefully considered. As per this agreement, the deductee was under obligation to carry out the work in 26 areas, some of which are briefly mentioned as under: * Operation and Maintenance of all plants and equipment and amenities * Plant and office premises upkeep * Fire fighting services * Chemicals procurement, storage and usage and handling * Sewage and waste management * Fuel handling, unloading, pumping, disposal, accounting and scheduling * Maintenance of safety, health and sec....

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....s 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 or consideration which would be income of the recipient chargeable under the head "Salaries". c Further, the facts of the present case are identical with the facts of Gujarat State Electricity Corporation Vs. ITO (cited supra) wherein the Hon'ble ITAT, Ahmadabad Bench held; "........ on a careful reading of the entire agreement dated 14-10-1998, we are of the view that the payment made by th....