TaxTMI 
TaxTMI 
TaxTMI 
2016 (1) TMI 810
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..../Bang/2011 2009-10 13. 455/2012 897/Bang/2011 2008-09 14. 456/2012 896/Bang/2011 2007-08 15 458/2012 913/Bang/2012 2009-10 16. 460/2012 912/Bang/2012 2008-09 17. 465/2012 911/Bang/2012 2007-08 2. All the above appeals were admitted to consider the following common substantial question of law: "Whether the Tribunal is justified in holding that Section 194J of the Act is not applicable to the facts and circumstances of this case?" 3. Heard Shri Y.V. Raviraj, learned counsel for the appellants/Income Tax Department and Shri Parthasarathi, learned counsel for the respondent/assessee. 4. Learned counsel for the Revenue made following submissions with regard to factual matrices of appeals. (i) Assessee, Hubli Electricity Supply Company Limited (HESCOM) is a State owned Company registered under the Companies Act and engaged in the business of buying and selling electricity. Assessee purchases electricity from State owned generators like Karnataka Power Corporation Limited (KPCL), National Thermal Corporation (NTC) and the like ones as also from private generators like Jindal Energy Limited. Power is transmitted from the generation point to the consumers....
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....t has been rendered liable to pay interest. Revenue was aggrieved by the order passed by the Commissioner against a finding that no demand could be visualized under Section 201 when the assessee would satisfy the Revenue that the taxes were paid by the payee. With the dismissal of the appeals by ITAT, Revenue has preferred these appeals raising questions of law mentioned supra. 5. Learned counsel for the Revenue urged the following grounds in support of these appeals. (i) Admittedly, KPTCL is a transmission company and power generated at the generating stations is transmitted through its transmission network; (ii) KPTCL collects transmission charges and SLDC charges for transmission of power. (iii) In terms of Section 39 of the Electricity Act, 2003 it undertakes transmission of electricity through intra-state transmission system and ensures development of efficient, coordinated and economical system for smooth flow of electricity from generating station to the load centres. (iv) State Load Dispatching Centre is also an another arm of KPTCL and collects fixed rate from generating companies called as 'SLDC charges'. SLDC is a statutory body and functions as per Se....
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....ument, he contended that in any event the income earned has been offered to tax by the payee namely, the KPTCL and therefore, the Commissioner (Appeals) has rightly held that the case on hand is fully covered by the ratio of the judgment of the Hon'ble Supreme Court in the case of Hindustan Coca Cola Beverages (P.) Ltd. (supra). He further contended that ITAT, rightly following the case of Bangalore Electricity Supply Co. v. ITO (TDS) ITA No. 530 to 535/Bang/2011has dismissed the appeals by the impugned order. Thus, he submitted that the instant appeals do not merit any consideration and accordingly prayed for their dismissal. 7. We have given our careful considerations to the submission made by the learned counsel for the Revenue and the assessee. Revenue is aggrieved by the decision of the ITAT holding that compliance of Sec 194J mandating deduction of tax at source are not attracted to the facts of these cases and the assessee was not liable to deduct tax at source on payment of transmission charges to KPTCL. 'Sec. 194J reads as follows: 194J. (1) Any person, not being an individual or a Hindu undivided family, who is responsible for paying to a resident any sum by....
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....ng on legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or advertising or such other profession as is notified by the Board for the purposes of section 44AA or of this section; (b) "fees for technical services" shall have the same meaning as in Explanation 2 to clause (vii) of sub-section (1) of section 9; 37[(ba) "royalty" shall have the same meaning as in Explanation 2 to clause (vi) of sub-section (1) of section 9;] (c) where any sum referred to in sub-section (1) is credited to any account, whether called "suspense account" or by any other name, in the books of account of the person liable to pay such sum, such crediting shall be deemed to be credit of such sum to the account of the payee and the provisions of this section shall apply accordingly. In the instant cases, the above provision would come into play only when there is payment of fee for availing technical services. Compliance or otherwise of the above provision by the assessee entirely hinges upon the factual matrix with regard to availing of technical services if any from the KPTCL. Thus, in order to answer the question of l....