9911796707
TMI Blog2016 (10) TMI 90X X X X Extracts X X X X X X X X Extracts X X X X ..... rection to the Assessing Officer to verify and pass necessary orders to delete the interest if the ULPL is found to have filed returns declaring losses. Therefore, we are of the considered view that the assessee has no grievance at this stage as the contention of the assessee were accepted and no liability to tax u/s. 201(1) or interest u/s. 201(1A) are existed. Therefore, we left open the issue of whether the payments made by the assessee to ULPL fall under fees for technical services u/s. 194J or fall under provisions of Sec. 194C of the Act as contract service. The assessee may raise its objections at appropriate stage. - Decided in favour of assessee for statistical purposes. - I.TA Nos.7056 & 7057/Mum/2014 - - - Dated:- 24-8-2016 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee is engaged in the business of developing, constructing, operating and maintaining port on Build own, operate and transfer (Boot) basis. During these Assessment Years, the assessee paid equipment hire charges to M/s. Utsav Logistics Pvt. Ltd. (ULPL) and deducted TDS @ 2% u/s. 194C of the Act. The assessee hired Reachstacker for the purpose of loading the containers into cargo ships. The contractor i.e. ULPL shall supply in accordance with the highest professional standards one empty stacker with the integrated telescopic streaders and all necessary spares and accessories and adequate number of suitable qualified and experienced personnel for operation and maintenance of the empty stacker as per the agreement entered into by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt and manpower not availed any technical or professional services within the provisions of Sec. 194J of the Act. The assessee also relied on the circular of CBDT No. 558 dated 28.3.1990 and submitted that in case of service contracts, the provisions of Sec. 194J are not applicable. It was further contended that for a payment to be liable for TDS u/s. 194J of the Act such payment should be for fees for technical services and such fees should be for rendering any technical, managerial or consultancy services and not for any other purposes. It was also contended that the payment to be covered u/s. 194J of the Act there should be a consideration for acquiring or using technical know-how provided or made available by human element. It was also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and charged interest of ₹ 13,28,381/- and ₹ 19,62,967/- u/s. 201(1A) of the Act for the Assessment Years 2010-11 and 2011-12 respectively. 6. On appeal, the Ld. CIT(A) sustained the action of the Assessing Officer that the assessee was liable to deduct tax at source on the payments made to ULPL in accordance with the provisions of Sec. 194J of the Act. However, the Ld. CIT(A) held that since ULPL is a loss company and since to tax is liable to be paid, no interest liability could be raised u/s. 201(1A) on the assessee company. The Ld. CIT(A) thus directed the Assessing Officer to verify the returns of ULPL and if there are loss returns by ULPL interest u/s. 201(1A) should not be charged. Against the order of the Ld. CIT(A) in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s were not made for any managerial or technical services but was made only for annual maintenance contract for services. Therefore he submits that the payment made by the assessee in hiring reachstacker which is a kind of crane shall not be for any technical services and thus the provisions of Sec. 194J have no application. 8. We have heard the rival contentions, perused the orders of the authorities below and the submissions made by the assessee and the case laws relied on . The assessee in this case which is engaged in the business of operating port entered into an agreement with ULPL for hiring empty reachstacker with the integrated telescopic streaders and all necessary spares and accessories and adequate number of suitable qualified ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contractor ULPL to the assessee in providing reachstacker and its operational personnel would amount to providing technical/managerial services, therefore assessee is liable to deduct TDS u/s. 194J of the Act. However, since the recipient ULPL have already accounted for the receipts as income, he has accepted that no further tax is to be recovered from the assessee. The assessee further contended before the Ld. CIT(A) that even the interest is not liable to be charged for the reason that the recipient i.e. ULPL owing to the losses no tax was payable for the Assessment Years 2010-11 and 2011-12 and therefore no interest liability could be raised u/s. 201(1)/201(1A) of the Act in view of the decisions viz., CIT Vs Rishikesh Apartments Co. Op. ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
