2017 (12) TMI 911

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....e demand raised by applying section 194J of the Income Tax Act, 1961 as the assessee was liable to deduct tax on payment of transmission and wheeling charges." 3. The brief facts of the case are that Assessee is a Public Limited Company engaged in the business of distribution and supply of electricity to consumers in the District of Gautam Budh Nagar. In this case TDS verification letter was issued on 18.3.2014 to check the correct applicability of TDS related provisions. During the assessment proceedings the AO noticed that the assessee has been making the payments under the head "transportation and wheeling charges" to various persons under transportation service agreement without deduction of tax at source u/s. 194J. In this regard, t....

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....preme Court of India in SLP(C) No. 853/2016 in the case of CIT(TDS) vs. Delhi Transco Limited and stated that the issue involved in the present appeal is squarely covered by the aforesaid decision of the Hon'ble Delhi High Court. 6. We have heard both the parties and perused the relevant records, especially the impugned order and the case laws cited by the Ld. Counsel of the assessee. We find that section 194J would have application only when the technology or technical knowledge, experiences/skills of a person is made available to others which can be further used by him for its own purpose and not where by using technical systems, services are rendered to others. Rendering of services by allowing use of technical System is different tha....

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....fees for technical service as defined under Explanation 2 to sec 9(1)(vii) of the Act and accordingly no tax is required to be deducted by the assessee u/s. 194J therefrom. Hence, the action of the AO in treating the assessee to be an assessee-in-default u/s. 201(1) of the Act and the order dated 27.3.2014 passed u/s. 201(1)/201(1A) of the I.T. Act were rightly deleted by the Ld. CIT(A), which does not need any interference on our part, hence, we uphold the action of the Ld. CIT(A) and reject the ground raised by the Revenue. Our aforesaid view is also fortified by the decision of the Hon'ble Delhi High Court in the case of CIT vs. Delhi Transco Ltd. (62 taxmann.com 166 ) (Del) (2015), wherein the Hon'ble Delhi High Court vide para no. 34 &....