9911796707
TMI Blog2017 (4) TMI 1368X X X X Extracts X X X X X X X X Extracts X X X X ..... e appellant has challenged the judgment and order of the Tribunal whereby the Tribunal has allowed the appeal preferred by the assessee. 2. Counsel for the appellant has framed the followings substantial questions of law:- A. Whether in the facts and circumstances of the case the ITAT has justified in law and has acted illegally and perversely in holding the assessee not in default u/s. 201(1) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r, in view of the decision of this court in D. B. Income Tax Appeal No. 32/2016 (Pr. Commissioner of Income Tax, Jaipur-3 V/s Sikar & Jhunjhunu Zila Dugdh Utpadak Sahakari Sangh Ltd., N. H. 11, P. O. Palsana, Sikar AY 2011-12) decided on 16.11.2016 wherein identical issue was considered and it was held in Para 3 and 4 as under:- 3. Counsel for the appellant has taken us to the reasoning given by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cuments that the amount was paid by the appellant to RCDF for various services rendred by RCDF to appellant. The services was partly in the nature of managerial services and partly for promotion and marketing of the products of the appellant. RCDF itself treated the receipts as "Service Charges". The payment made by the appellant was not in the nature of reimbursement of expenses incurred by RCDF. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... am of the view that the amount paid by the appellant to RCDF is in the nature of "fees for professional or technical services" on which provisions of section 194J is applicable. Since the appellant has not deducted the tax at source from such payment, the expenditure is not allowable u/s 40(a)(ia) of the Act." "However, I agree with the contention of the ld. AR that provisions of sectioin 40(a)( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is concerned, there is no rendering of any managerial services by RCDF as alleged by the AO u/s 194H and upheld ld. CIT(A) u/s194J. Since there is no rendering of any services and the payment is not made for any managerial services to RCDF, therefore, payment can neither be held as liable for TDS u/s 194H of the Act as commission/brokerage as held by the AO nor u/s 194J for rendering any manageri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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