TaxTMI 
TaxTMI 
2016 (11) TMI 960
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....IPLE OF NATURAL JUSTICE: 1. On the facts and in the circumstances of the case and in law, the Learned CIT(A) erred in upholding the action of the Income Tax Officer (OSD) (TDS)-1(1), Mumbai ("the AO") in passing an order under section 201(1) / 201(1A) of the Act without giving a fair and reasonable opportunity of hearing to the Appellant and thereby violating the principles of natural justice. 2. The learned CIT(A) failed to appreciate and ought to have held that the notice for the hearing was not received by the appellant. 3. The appellant prays that the order passed by the AO under section 201(1) / 201(1A) of the Act be annulled as void abinitio and /or otherwise bad in law. "GROUND II: INTEREST LEVIED UNDER SECTION 201(1A) OF....
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.... ought to have held that the recipients have already paid taxes on their income as advance tax or self-assessment tax and therefore, interest u/s.201(1A) of the Act is to be calculated upto the date on which recipients paid taxes on their income as advance tax or self-assessment tax. 3. The Appellant prays that the AO be directed to recalculate the interest liability under section 201(1A) of the Act from the date on which tax is to be deductible under section 194J of the Act upto the date on which the recipient has paid taxes on their income as advance tax or self assessment tax. ADDITIONAL GROUND NO. I:- 1. There is no liability to deduct tax at source u/s.194J of the Act on the transaction charges paid to Stock Exchanges and thus....
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.... on account of Transaction charges to M/s.Bombay Stock Exchange and M/s. National Stock Exchange. The services rendered by the stock exchanges against the payment of transaction charges represents payment for managerial services and are covered under the provision of section 194J read with explanation 2 to section 9(1)(vii) of the Income Tax Act, 1961( in short "the Act"). Thereafter a show cause notice was issued and served upon the assessee. After discussion and the details available on record the total default was worked out as under:- Sr. No. Description Transaction charges TDS Interest u/s.201(1A) Total Default 1 Bombay Stock Exchange Rs.9,65,675/- -- Rs.19,694/- Rs.19,694/- 2 National Stock Ex....
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...., the matter went in appeal before the Hon'ble Supreme Court of India wherein it is specifically held that the services made available by the M/s. Bombay Stock Exchange [BSE Online Trading (BOLT) System] for which transaction charges are paid by members of BSE are common services that every member of Stock Exchange is necessarily required to avail of the carry out trading in securities in Stock Exchange and such services do not amount to 'technical services' provided by Stock Exchange, not being services specifically sought for by user or consumer. Therefore, transaction charges paid by the members of BSE to BSE are in nature of payments made for facilities provided by Stock Exchange and no TDS on such payments would be deductible under sec....