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TMI Blog2016 (11) TMI 878X X X X Extracts X X X X X X X X Extracts X X X X ..... D. Manmohan, V.P. The only ground urged by the Revenue, in the appeal arising out of the order passed by the CIT(A)-11, Hyderabad, reads as under : In the facts and circumstances of the case, whether the CIT(A) is correct in allowing the ground of the assessee that provisions of section 40(a)(ia) not applicable by following the decision of the Vizag Special Bench s decision in the case of M/s. Merylin Shipping P. Ltd., when the said decision was suspended by the Hon ble High Court of A.P. 2. In order to appreciate the issue under consideration it may be necessary to briefly record the facts of the case. The assessee-company is incorporated for the purpose of carrying on the business as Registrars and Share Transfer Agents. For ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... visions of section 40(a)(ia) of the I.T. Act, 1961. 4. Aggrieved by the action of the Assessing Officer, the assessee preferred an appeal before the CIT(A) wherein it was contended that the payments to NSDL/CDSL was termed as BENPOS charges. The assessee undertakes to furnish its clients, information on shareholders and extent of their holding in the respective client companies and for that purpose the website of NSDL is accessed and assessee-company pays an upfront fee which is calculated on a flat rate depending on number of records requested. Upon receipt of the fees NSDL permits access to the assessee for downloading the relevant information. Thus the payment made by the assessee is not towards professional services rendered by NSD ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vity of services rendered by NSDL/CDSL to the assessee in which event the settlement and custody fees paid cannot be said to be covered by the provisions of section 194J of the Act by treating it as technical services. The Bench further observed that these companies have also treated these amounts as incomes and offered to tax in which event the amendment brought to provisions of section 40(a)(ia) do apply to the facts of the case as well. Thus on both the counts the disallowances made by the Assessing Officer was set aside by the Tribunal. 8. The Ld. D.R. on the other hand, strongly relied upon the order passed by the Assessing Officer. 9. We have carefully considered the rival contentions and perused the record. In the light of de ..... X X X X Extracts X X X X X X X X Extracts X X X X
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