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TMI Blog2011 (7) TMI 1118X X X X Extracts X X X X X X X X Extracts X X X X ..... f 2008. 2. This appeal has been preferred by the Revenue under s. 260A of the IT Act, 1961 (in short "the Act") against the order dt. 28th Feb., 2007 passed by the Income-tax Appellate Tribunal, Chandigarh Bench "B" (hereinafter referred to as "the Tribunal") in ITA No. 229/Chd/2006, relating to the asst. yr. 2004-05, claiming the following substantial question of law : "Whether on the facts and circumstances of the case and in law, the Hon'ble Tribunal was justified in holding that the facility provided by PNB, MICR Cheque Processing Centre, cannot be considered as a 'technical service' for the purpose of s. 194J of the IT Act, 1961 ?" 3. Briefly stated, the facts necessary for adjudi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by way of an appeal who vide order dt. 28th Feb., 2007 upheld the order of the CIT(A) and dismissed the appeal. Hence, the present appeal by the Department. 4. The issue that arises for consideration in these appeals is whether the processing charges which were paid by the assessee to PNB MICR Centre for clearing of cheques by using standard facility provided by the PNB MICR Centre to all its customer-banks would fall within the definition of "technical service" and the payments made for the same were covered under s. 194J of the Act. 5. The Tribunal while relying upon the judgment of the Madras High Court in Skycell Communications Ltd. v. Dy. CIT [2001] 251 ITR 53 (Mad.) had adjudicated the issue in favour of the assessee. 6. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... #39;capacity' of each service provider fixed when Interconnect Agreements are arrived at ? For example, we are informed that each service provider is allotted a certain 'capacity'. On what basis such 'capacity' is allotted and what happens if a situation arises where a service provider's 'allotted capacity' gets exhausted and it wants, on an urgent basis, 'additional capacity' ? Whether at that stage, any human intervention is involved is required to be examined, which again needs a technical data. We are only highlighting these facts to emphasise that these types of matters cannot be decided without any technical assistance available on record. 8. There is one more aspect that requires to be gone in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Such expert(s) will be examined (including cross-examined) within a period of four weeks from the date of receipt of the order of this Court. Liberty is also given to respondent No. 1 to examine its expert and to adduce any other evidence." 9. The primary basis whereby the apex Court had concluded services to be falling under s. 194J of the Act to be technical services that whether any human intervention was involved in the activity or not. The apex Court observed that wherever there was human intervention requiring examination of technical data, the same would fall within the definition of technical services and in the absence thereof, the same would not partake the character of technical services. The apex Court in that case had r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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