TaxTMI 
TaxTMI 
TaxTMI 
2016 (5) TMI 1104
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....eferred to as "the Act") for Assessment Years 2006-07 to 2008-09 vide his separate orders dated 31.12.2008, 31.12.2009 and 30.11.2010 respectively. 2. The first common issue in these three appeals of revenue is as regards to the order of CIT(A) deleting the disallowance made by AO for non-deduction of TDS u/s. 194J of the Act on various payments thereby invoking the provisions of section 40(a)(ia) of the Act. For this, revenue has raised following ground no.1 in AY 2006-07: "1. Whether on the facts and the circumstances of the case the Ld. CIT(A)-1, Kolkata has erred in deleting the addition of Rs. 111,91,59,021/- u/s. 40(a)(ia) although TDS is applicable as per section 194C/194J of the Act on various payments?" 3. We have heard rival ....
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.... could not be subject matter to the provisions of section 194C or 194J of the Act. This was restricted to the case of the assessee in view of the public function to be undertaken by it, as a result of restructuring of West Bengal State Electricity Distribution Co. Ltd. The wheeling charges represent the charges for permitting use of state transmission utility for permitting use of state transmission utility by the person other than the distribution licensee. The transmission charges simply constitute a fee for availing of the transmission utility to be used by open asset concept for distribution of electricity, licensees and consumers. In our view, the wheeling charges and transmission charges are neither contractual payments nor fee for te....
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....m of active energy and reactive energy and the power factor is the ratio of active energy. Power factor is also computed from active energy and reactive energy. So power factor of a consumer depends on active energy and reactive energy drawn by the consumer. The energy charges are claimed as active energy only. The reactive energy consumed by the consumers depends upon electrical equipments used by the consumers. Power factor decreases where reactive drawn by the consumer is higher. Similarly, Power Factor increases when reactive energy became lesser. Ideal power factor is unity. As per terms and conditions of Tariff order of 2005-06, Power Factor Surcharge was payable by the High Voltage/Extra High Voltage Industrial consumers, whose month....
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....ion (CERC). Availability based Tariff (ABT) has been introduced with effect from 01.04.2003 in Eastern Region for purchase of power from Central Sector Power Station. In the availability Based Tariff (ABT) there are three parts. (i) Capacity charge (ii) Energy charge (iii) Un Scheduled Interchange (UI) charge. In view of the above, we find that the UI charges do not fall within the purview of fee for technical services as defined in section 194J of the Act are not liable to TDS. Hence, we confirm the order of CIT(A) deleting the disallowance made by AO by invoking the provisions of section 40(a)(ia) of the Act. This common issue of revenue's appeals is dismissed. 8. In respect to various other charges i.e. fee payable to Regional Load Desp....
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....company was liable to deduct TDS on the above stated payment of license fee but failed to deduct the same. Accordingly, he disallowed the entire license fee of Rs. 76.74 lacs by invoking provisions of section 40(a)(ia) of the Act. The CIT(A) deleted the disallowance. Aggrieved, revenue is in second appeal before Tribunal. 11. We find from the facts of the case that the provisions of section 12 of Electricity Act, 2003. Section 12 of the Electricity Act, 2003 provides that no persons shall transmit electricity, or distribute electricity or undertake trading in electricity, unless he is authorized to do so by a licence issued under Section 14, or is exempt under Section 13 of the said Act. Section 14 of the said Act further provides that the....