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TMI Blog2018 (9) TMI 1399X X X X Extracts X X X X X X X X Extracts X X X X ..... neers of BEL, however these rendering of training has been separately remunerated by BEL to assessee. Thus payment received by BET towards the work carried on under Phase II of the agreement, will not fall under the definition of the term professional services as no new technical consultancy has been offered by BEL to assessee. No fault in the observations of Ld.CIT (A) in holding that the work undertaken by BEL is covered under the provisions of section 194C. Accordingly we dismiss the ground raised by the revenue. - ITA No. 1281/Del/2016 - - - Dated:- 14-8-2018 - SH. R.S. SYAL, VICE PRESIDENT AND SMT. BEENA A. PILLAI, JUDICIAL MEMBER For The Assessee : Sh. Naveen Gupta, Adv. For The Revenue : Sh. Ravi Kant Gupta, Sr. DR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he same fell within the definition of the term work as defined under section 194C of the Act. 2. A show cause was arranged accordingly issued to assessee seeking explanation regarding applicability of section 194J of the Act, as according to Ld.AO, BEL has provided technical services to assessee. Assessee vide letter dated 13/02/15 submitted that as per agreement, business activity between assessee and BEL were carried out in 3 phases. It was submitted that payments made by assessee to BEL and TDS under section 194C was deducted, wherein, BEL had carried out assembling activity on sub contract basis. 4. Ld.AO was however of the opinion that the activities carried out by BEL involved technical staff and qualified engineers who we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by Ld.AO submitted that as per the terms and conditions of the agreement assessee not only supply the required RFU s but also gives technical knowhow and impart education to the engineers of BEL so that these equipments, in future, be made at the business premises of BEL. He thus submitted that the services received by assessee from BEL falls within the ambit of professional and technical services as per section 194J of the Act. 8. On the contrary Ld.AR submitted that as per agreement entered into by assessee with BEL production of RFU s is divided into 3 phases being; Phase I: Supply of fully finished 750 numbers of RFU s by assessee to BEL; Phase II: Coproduction face of 750 numbers of RFU s as per workshare plant enclose ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g mechanical parts to BEL as per the prices agreed upon in Appendix G. Further assessee will be providing full manufacturing document and materials for modules M1 and M2 to BEL. As per Clause 3.2.4, module M1 and M2 will be assembled by BEL, and shipped back to assessee. Assessee after inspection of assembled module M1 and M2 at BEL Ghaziabad unit, would export them to its parent company in US for integration. The final alignment of RFU would take place in US. It is observed that BEL is only providing assembly of the raw materials provided by assessee in respect of a small component called as RFU which is as per the specifications of assessee. 11. Ld.AO has alleged the activities rendered by BEL to assessee within the ambit of section ..... X X X X Extracts X X X X X X X X Extracts X X X X
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