TaxTMI 
TaxTMI 
2021 (7) TMI 1197
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.... of the Learned CIT(Appeals) in sustaining the action of the Assessing Officer to the effect that there is short deduction of TDS by the appellant company to the extent of Rs. 1266827/- u/s 201 of the Act and Consequential interest charged u/s 201(1A) Rs. 1,19,530/- in respect of IIIrd and IVth Quarter in the Financial year 2016-17, is against the facts of the case. 2. The Appellant company is engaged in the business of providing High speed wireless internet access to its customers without any human intervention. In view of this appellant liability for tax deduction comes within the ambit of Sec.194C and not u/s 194J of the Income tax Act as adopted by the AO and upheld by the first appellate authority. 3. It has been judi....
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....r bandwidth communication sold by M/s. Bharthi Airtel Ltd and M/s. Reliance Communications Ltd. The assessee has entered into a Co-location Service Agreement with M/s. Bharti Airtel Ltd and M/s. Reliance Communications Ltd for providing business supply services in connection with high speed wireless internet access to its customers. The assessee purchased bulk bandwidth data from internet service providers namely M/s. Bharti Airtel Ltd., and M/s. Reliance Communications Ltd., and supplies to various households through network of towers installed at various substations. As per the agreement entered into between the assessee and M/s. Bharti Airtel Ltd., the nature of services provided by the supplier is to provide customer with a specific ....
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....1(1) & 201(1A) of the Act, without appreciating the fact that the assessee company is engaged in the business of providing high speed wireless internet access to its customers without any human intervention and hence, said services cannot be called as fees for technical services, as defined u/s.9(1) of the Act, which attracts provisions of section 194J of the Act. He, further submitted that the issue is now fully covered in favour of the assessee by the decision of various High Courts and Tribunals, as per which, the services rendered in connection with sale of high speed internet bandwidth without human intervention is not coming u/s.194J of the Act. In this regard, he relied upon the decision of ITAT, Delhi Bench in the case of ITO vs. M/....
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....ore noted that in the process of purchase and distribution of signals, there is no human intervention and is fully automated. From the above, it is clear that the services rendered by M/s. Bharti Airtel Ltd., and M/s. Reliance Communications Ltd., to the assessee without human intervention, cannot be considered as services in nature of managerial, consultancy, technical services which comes under the definition of fees for technical services as defined u/s.9(1) of the Act, which attracts TDS provisions as per section 194J of the Act. We, further noted that the ITAT, Delhi Bench in the case of M/s. Primenet Global Ltd., supra, has considered an identical issue and after analyzing the nature of services as per the agreement between the partie....