TaxTMI 
TaxTMI 
2025 (6) TMI 1861
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....ts and circumstances of the case as well as in law, the Learned CIT(A) has erred in confirming the action of the Learned Assessing Officer in passing an order u/s. 201 of the Income Tax Act 1961 by raising a demand of Rs. 4,08,000/-on account of alleged non deduction of TDS u/s. 194J of the Income Tax Act, 1961 on the payment made of Rs. 40,80,000/-, without considering the facts and circumstances of the case. On the facts and circumstances of the case as well as in law, the Learned CIT(A) has erred in confirming the action of the Learned Assessing Officer in levying an interest of Rs. 2,20,320/- u/s. 201(1A) of the Income Tax Act, 1961 on the alleged non-payment of TDS of Rs. 4,08,000/- without considering the facts and circumstan....
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....it was submitted that hiring of charter plane cannot be treated as a payment made for professional or technical services and reference was drawn to the Explanation (b) to Section 194J r.w. Explanation 2 to Clause (vii) of Sub-section (1) of Section 9. Further reliance was placed on the decision of the Hon"ble Madras High Court in the case of Skycell Communications Ltd. vs. DCIT, [2001] 251 ITR 53 (Madras) and it was submitted that where a person travels in an aeroplane, it cannot be said that the airlines is rendering a technical service to the passenger and, therefore, the passenger is not under any obligation to deduct tax at source on the payments made to the airline for having used it for travelling from one destination to another. 4....
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....cessary confirmation in this regard. 6. Per contra, the Ld. DR is heard, who has relied on the order passed by the Ld.CIT(A). Further, regarding the copy of the invoice submitted by the Ld.AR, it was submitted that it is unclear whether the said invoice was placed before the lower authorities or before the Ld.CIT(A) and in any case on perusal of the said invoice, it is apparent that the assessee has incurred charter hire charges for the flight which were undertaken on 30-12-2021 and thereafter again on 03-01-2022 and the charges not just include flying charges, but also ground handling charges, which are clearly technical in nature. It was further submitted that it is also evident from the invoice that the Velocity Charter Private Limite....
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....er the same will constitute as fee for technical services, professional services or in the nature of a royalty and thereafter, basis such determination, the TDS liability can be quantified. However, we find that in the instant case, there is no such finding recorded by the AO apparently for the reason that the assessee has not complied to the show cause notice issued by the AO. Even there is nothing on record as to how the tax auditor has determined the TDS liability u/s. 194J of the Act. Even before the Ld.CIT(A), we find that even though the assessee has stated that it has availed charter hire services from Velocity Charter Private Limited, there is no supporting documentation in terms of any charter hire agreement or copy of the invoice ....