TaxTMI 
TaxTMI 
2017 (11) TMI 1633
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....by applying section 194J of the Income-tax Act, 1961 [hereinafter referred to as 'the Act' for short] as the assessee was liable to deduct tax on payment of transmission and wheeling charges." 3. Briefly stated, the facts of the case as emanating from the order of the ld. CIT(A) are that the assessee is 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 18.03.2014 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 und....
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....ny 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, the assessee was asked to explain the reasons for failure to deduct tax at source u/s. 194J as according to AO these payments qualified to be covered u/s. 194J i.e. being fees for technical or professional services. In response, the asses....
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....urt. 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 than charging fees for rendering technical services. In the present case no scientific knowledge, experience or skill is made available/rendered by the PGCIL to the assessee. From the records, we have seen that the assesse....
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....sessee 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 & 35 held as under:- "34. To reiterate, by virtue of the BPTA agreement between DTL and PGCIL there is transportation of the electricity from PGCIL to DTL, through the equipment and network required statutorily ....