9911796707
TMI Blog2019 (10) TMI 1127X X X X Extracts X X X X X X X X Extracts X X X X ..... sments orders dated 24.03.2014, 31.03.2015, 26.12.2016 & 26.12.2016 respectively passed by learned Assessing Officer (hereinafter called "the AO") u/s.143(3) of the Income-tax Act, 1961 (hereinafter called "the Act") for aforesaid ay's: 2011-12 to 2014-15 respectively. 2. The two appeals in ITA Nos.467 & 468/Chny/2018 filed by Revenue for ay: 2013-14 and 2014-15 respectively are the appeals wherein the tax effect is admittedly lower than Rs. 50,00,000/- and both these appeals are covered by CBDT Circular No. 17/2019 dated 08.08.2019 and hence these two appeals filed by Revenue are not maintainable before the tribunal due to low tax effect. The ld.CIT-DR fairly admitted that these two appeals filed by Revenue are not covered/hit by various exceptions as applicable to aforesaid CBDT Circular and hence both these appeals may be dismissed owing to low tax effect as these appeals are not maintainable before the tribunal. The learned Counsel for the assessee also submitted that both these appeals filed by Revenue for ay: 2013-14 and 2014-15 are covered by aforesaid CBDT circular and can be dismissed owing to low tax effect. After hearing both the parties and perusing material on record, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arning dividend income. 2.2 The ld. CIT(A) relied upon the decision of the ITAT in assessee's own case for A.Y.2008-09 in ITA.No.1774/Mds/2012 dated 19.07.2013. The above decision of the ITAT was not accepted by the department and appeal to the High Court has been filed with regard to the deletion of disallowance made u/s.14A of the Act. 3.1 The ld. CIT(A) has erred in deleting the disallowance of payment made to Fund Quest u/s.40(a)(ia) of the Act stating that the said payment was not in the nature of royalty falling within the ambit of provisions of section 9(1)(vi) of the Act. 3.2 The ld. CIT(A) relied on the decision of the ITAT in assessee's own for A.Y. 2008-09 in ITA.No.1774/Mds/2012 dated 19.07.2013. The above decision of the ITAT was not accepted by the department and appeal to the High Court has been filed against the deletion of disallowance of payment made to Fund Quest. 4.1 The ld. CIT(A) has erred in deleting the disallowance of expenses in the nature of repairs / improvements made to lease hold rented premises treating it as revenue in nature. 4.2 The ld. CIT(A) has failed to appreciate the judgement of The Hon'ble Supreme Court in Ballimal Nava ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ical or consultancy services. The AO observed that these are payments made for technical services and keeping in view explanation to Sec.9(1)(vii) of the 1961 Act as introduced by the Finance Act, 2010 with retrospective effect from 01.06.1976 which stipulated that these payments shall be taxable only in India irrespective of the place where the services are rendered . The aforesaid explanation provided as under: "[Explanation.-For the removal of doubts, it is hereby declared that for the purposes of this section, income of a non-resident shall be deemed to accrue or arise in India under clause (v) or clause (vi) or clause (vii) of sub-section (1) and shall be included in the total income of the non-resident, whether or not,- (i) the non-resident has a residence or place of business or business connection in India; or (ii) the non-resident has rendered services in India.]" Thus, the AO brought the aforesaid payments made by assessee to BNP Paribas Investment Singapore Limited, Singapore without deduction of income tax at source to tax keeping in view provisions of Sec.40(a)(i) of the 1961 Act read with Section 195 of the 1961 Act, vide assessment order dated 24.03.2014 passe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be executed in accordance with all applicable laws and regulations, the terms of the Relevant Documents. It is acknowledged that pursuant to this Agreement, BNPP IP Singapore's distribution of the Fund may be performed directly or indirectly by way of commercializing foreign domiciled collective investment schemes that invest as feeders into the Fund. b. Issue of Units: Sundaram hereby agrees to procure, in accordance with the terms of the Prospectus and Trust Deed, or Articles as the case may be, the issuance of the Units to BNPP IP Singapore's clients to the extent that the distribution is effected in accordance with the terms of the Relevant Documents and hereof and subscriptions for Units are effected in accordance with the Relevant Documents. BNPP IP Singapore may use all legally available means, including electronic media (e.g. Internet, website, email) in order to distribute the Units in accordance with this Agreement. 3. DOCUMENTATION a. Statutory Reports: Sundaram shall provide or make available to BNPP IP Singapore the prospectus, any simplified Prospectus (as applicable), periodic financial reports, notices convening unit holders' meetings and any o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ations in any relevant jurisdiction relating to the marketing and selling of the Units by way of public offers and private placements, the terms of this Agreement and the Relevant Document, BNPP IP Singapore acknowledges the restrictions on sales in countries where the Fund is not authorized for public sale, such as the United States, and agrees to comply with such restrictions. BNPP IP Singapore shall not sell or offer to sell any Units in the United States, its territories or possessions, or remit any Fund related documentation to a "US Person", as such term is defined in Regulation S of the United States Securities Act of 1933, as amended, except in connection with transactions exempt from registration under the Securities Act of 1993. Any failure to comply with these restrictions may constitute a violation of the US Securities Laws. Moreover, in the event of subscriptions made by or on behalf of politically exposed persons, BNPP IP Singapore will ensure that due diligence on such clients (including but not limited to for the prevention of corruption) in line with applicable law and regulation has been duly effected. BNPP IP, Singapore has procedures in place to ensure complia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... graph 3 is received ; or (b) make available technical knowledge, experience, skill, know-how or processes, which enables the person acquiring the services to apply the technology contained therein ; or (c) consist of the development and transfer of a technical plan or technical design, but excludes any service that does not enable the person acquiring the service to apply the technology contained therein. For the purposes of (b) and (c) above, the person acquiring the service shall be deemed to include an agent, nominee, or transferee of such person. 6.9 From a perusal of Article 12(4)(a) of the India-Singapore Double Taxation Avoidance Agreement (DTAA), it is seen that 'fees for technical services' as used in that Article means any services of managerial, technical or consultancy in nature if such services are ancillary and subsidiary to the items for which payment as per Article 3 of the DTAA is made. Article 3 dealing with Royalties includes payments made as a consideration for the use of or right to use of any information concerning industrial, commercial or scientific experience. 6.10 In the present age of technology, it is an undisputed fact that services, i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and market practice to ensure, among other things, that: (i) BNPP IP Singapore's individual investment advisers are properly trained to know its clients and understand the investment product they recommend to such clients; (ii) Any advice given by BNPP IP Singapore regarding investments in any sub-fund of the Fund is reasonably suitable for its clients, by matching the risk return profile of the subfund with relevant information on the client (such as education level, source of income or employment history, net-worth, financial market knowledge, investment experience, investment objectives and risk tolerance level); (iii) All relevant material information is provided to BNPP IP Singapore's clients to help them make informed investment decisions; (iv) Any representations made and information provided to BNPP IP Singapore's clients are accurate and not misleading. 6.13 It is seen from the above that BNP IP Singapore advisers are trained to analyze the investment product offered by the appellant. They are in a position to advise the nonresident clients on the risk-return profile of the schemes floated by the appellant-company so that they can make informed decisi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... India. Nevertheless, the relevant Explanation below; Section 9(2) reads as follows: Explanation.- for the removal of doubts, it is hereby declared that for the purposes of this section, income of a non-resident shall be deemed to accrue or arise in India under clause (v) or clause (vi) or clause (vii) of sub-section (1) and shall be included in the total income of the non-resident, whether or not,--- (i) the non-resident has a residence or place of business or business connection in India; or (ii) the non-resident has rendered services in India. 6.16 Therefore, as far as section 9(1)(vii)(b) is concerned, Fees for Technical Services shall be considered as the income of a non-resident irrespective of residence place of business or place of rendering of services. The exceptions carved out apply to a situation where Fees for Technical Services is payable for services utilised for business or profession carried out by a resident payer outside India or for the purpose of making or earning of income by a resident payer from a source outside India. However, the clause clearly mandates that services utilised in India are liable to taxation as fees for technical fees, 6.17 The legi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the case of Jindal Thermal Power Company Ltd, vs DCTT [TDS] has held that the Explanation, in its present form, does not do away with the requirement of rendering of services in India for any income to be deemed to accrue or arise to a non-resident under section 9. It has been held that on a plain reading of the Explanation, the criteria of rendering services in India and the utilization of the service in India laid down by the Supreme Court in its judgement in the case of Ishikawajima-Harima Heavy Industries Ltd. (supra) remains untouched and unaffected by the Explanation. In order to remove any doubt about the legislative intent of the aforesaid source rule, it is proposed to substitute the existing Explanation with a new Explanation to specifically state that the income of a non-resident shall be deemed to accrue or arise in India under clause (v) or clause (vi) or clause (vii) of sub-section (1) of section 9 and shall be included in his total income, whether or not, (a) the non-resident has a residence or place of business or business connection in India; or (b) the non-resident has rendered services in India, 6.18 Therefore, the Explanation in its present form was enact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n another country. The aforesaid principle sometimes is given a different name, that is, the territorial principle. It is apt to state here that the residence based taxation is perceived as benefiting the developed or capital exporting countries whereas the source based taxation protects and is regarded as more beneficial to capital importing countries, that is, developing nations. Here comes the principle of nexus, for the nexus of the right to tax is in the source rule. It is founded on the right of a country to tax the income earned from a source located in the said State, irrespective of the country of the residence of the recipient. It is well settled that the source based taxation is accepted and applied in international taxation law. 25. The two principles that we have mentioned hereinabove, are also applied in domestic law in various countries. The source rule is in consonance with the nexus theory and does not fall foul of the said doctrine on the ground of extra-territorial operation. The doctrine of source rule has been explained as a country where the income or wealth is physically or economically produced, [See League of Nations, Report on 'Double Taxation by Bru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt is concerned. 6.21 The Hon'ble Supreme Court of India, in the case of Transmission Corporation of Andhra Pradesh Ltd. Vs CIT (SC)(239 ITR 587) declared that any person making payments to a non-resident would be liable to deduct tax when the payment so made is chargeable to tax under the Income Tax Act, 1961. 6.22 In view of the above, the disallowance made for non-deduction of tax on technical services u/s.40(a)(ia) by the Assessing Officer is sustained in respect of the assessment years under consideration. The appellant fails on this ground." 8. Aggrieved by an appellate order dated 30.11.2017 passed by learned CIT(A), the assessee has now filed an appeal before the tribunal . The contentions are raised by learned counsel for the assessee that the assessee has made payments to M/s.BNP Paribas Investment Singapore Ltd., Singapore as distribution fee for arranging subscription for the units . Reference was drawn to the DTAA entered into between India and Singapore. It was submitted that the said DTAA has a clause that technical know how is be made available to be covered under the Fee for Technical Services(FTS) and since in the instant case , technical know how was no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hnical know-how should be made available which could be applied to come within the ambit of deduction of income-tax at source. It was submitted that arrangement between assessee and BNP Paribas is on principal to principal basis. Attention was drawn to India-Singapore DTAA. It was submitted even if there is an principal to agency relations between assessee and BNP Paribas, it would not made any difference as even then, the assessee was not liable to deduct income-tax at source before remitting payment to BNP Paribas. 9. We have heard both the rival parties and perused the material on record including cited case laws. We have observed that assessee is an Asset Management Company for Mutual Funds. The assessee made payments through remittance sent abroad in foreign currency to M/s BNP Paribas Investment Singapore Limited, Singapore to the tune of Rs. 37,61,716/- for the purposes of investment management (Marketing Fees) to a non resident without deducting income-tax at source u/s 195 of the 1961 Act. The said fee was paid for distribution of assessee's units of Mutual Funds or shares abroad by said BNP Paribas, Singapore. The said BNP Paribas Investment Singapore Limited, Singapore ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... available clause, while BNP Paribas did not made available any technical know how or knowledge to the assessee which could enable assessee to apply technical knowledge contained therein. The decision of Hon'ble Karnataka High Court in the case of CIT v. De Beers India Minerals Private Limited reported in (2012) 21 taxmann.com 214(Kar.) is relevant. Thus, under these circumstances, we order deletion of the additions made by the AO which stood later confirmed by learned CIT(A) to the tune of payment of Rs. 37,61,716/- made by the assessee through remittance abroad in foreign currency to BNP Paribas, Singapore. Under these circumstances, we are inclined to delete aforesaid additions to the tune of Rs. 37,61,716/- made by the AO by invoking provisions of Section 40(a)(i) of the 1961 Act read with Section 195 of the 1961 Act which stood later confirmed by learned CIT(A). In our considered view, if the said payments are not taxable in India in the hands of the Non-resident recipient , then provisions of Section 195 shall have no applicability. It is relevant to refer to the decision's of Hon'ble Madras High Court in the case of Evolv Clothing Company Private Limited v. ACIT reported in ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erhead and expenses on salary , travel etc. for top management executives who are involved in investment portfolio are to be disallowed. The AO also observed that all investments , income from which does not or shall not form part of the total income shall be considered for disallowance u/s. 14A of the 1961 Act read with Rule 8D of the 1962 Rules. The AO also referred to CBDT circular no. 5 / 2014 dated 11.02.2014. The AO applied Rule 8D of the Income-tax Rules, 1962 and made disallowance u/s.14A r.w.r.8D(2)(iii) of the 1962 Rules wherein the amount of Rs. 11,72,157/- was disallowed under normal computation of income and similar disallowance was also made while computing book profits u/s.115JB , as per clause (f) to Section 115JB of the 1961 Act. 10. Aggrieved by an assessment framed by the AO u/s 143(3) of the 1961 Act, the assessee filed first appeal before learned CIT(A) who was pleased to delete disallowance of expenses made u/s.14A read with Rule 8D of the 1962 Rules for computing book profits u/s 115JB of the 1961 Act by following Special Bench decision of Delhi-tribunal in the case of M/s. Vireet Investment Pvt. Ltd. 165 ITD 27(Del-trib. SB). So far as additions made u/s 14 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ec.14A r.w.r. 8D(2)(iii) of the 1962 Rules to make total disallowance of Rs. 11,72,157/- @ 0.5% of the average investments. The investment made by assessee as on 31.03.2010 was Rs. 25.58 Crs. whereas it was Rs. 21.30 Crs. as on 31.03.2011. The assessee has claimed that short term investments cannot be considered for the purpose of making disallowance u/s.14A of the 1961 Act owing to fact that short term capital gains earned on these investments had suffered taxation. We are not in agreement with assessee so far as this contention is concerned and reject this contention of the assessee keeping in view decision of Hon'ble Supreme Court in the case of Maxopp Investment Limited(supra) wherein it was held that dominant purpose of making investment has no relevance while computing disallowance of expenditure incurred in relation to earning of an exempt income. However, the assessee also claimed that only those investment which actually yielded dividend income which was claimed as an exempt income should be considered for the purpose of making disallowance of expenditure u/s 14A of the 1961 Act. We are in agreement with this contentions of the assessee keeping in view decision of Special ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing Section may, without limitation, include: a. providing research reports, macro and micro economic analysis and other financial advisory services; b. recognise sources for value creation; c. advising on investigation, structuring, monitoring of Portfolio Securities as the case may be; d. assist in formulation and evaluation of strategies for investment and disinvestment including providing analysis and investigations of potential dispositions of Portfolio Securities, e. undertake due diligence of investment opportunities and submit reports and recommendations; f. advising on the timing, consideration, terms, mode and manner of investments and/or divestments; g. furnishing other commercial/proprietary information to the Manager with regard to the investment and / or divestment opportunities; h. any other advisory services as may be desired by the Manager relating to the management of the Account and as agreed between the Parties from time to time." ii) It can be very clearly seen from the above facts that the assessee availed the above mentioned advisory services from M/s.Fund Quest, which has been in turn utilized by the assessee for its investments purpose in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the agreement which stipulated as under: " 3.4 The Investment Advisor will make available to the Manager the use of its name and its logo in any documentation previously approved by the Investment Advisor which the Manager produces in respect of the advice contemplated herein." 14.4 Thus , the AO held that the assessee made payments for receipt of technical knowledge. The AO observed that the data base developed by Fund Quest was given to the assessee who is located in India and these were not services rendered by Non Resident outside India nor as outright purchase of the above data base , since the data base received cannot be shared with any body nor sold to the third person by the assessee as per Article VII of the agreement entered by the assessee with M/s Fund Quest. The AO observed that CBDT circular no. 786/2000 relied upon by the assessee is not applicable in the instant case. The AO relied upon decision of Hon'ble AAR Ruling in the case of Steffen Robertson and Kirsten Consulting Engineers and Scientists v. CIT (1998) 230 ITR 206 wherein it was held that what is crucial for bringing to tax said fee for technical know how is place where the said services are utilize ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s own case by the Hon'ble ITAT vide order in ITA No. l774/Mds/2012 dated 19.07.2013 for the A.Y. 2008-09 which is as follows: Extracted from ITAT's order dated 19.07.2013 "iii. The third ground in the appeal relates to dis-allowance u/s. 40(a)(ia). The assessee is into investment business. The assessee has entered into an agreement with M/s. Fund Quest (France) on 13-07-2007, to provide investment advice for the investments to be carried outside India. M/s. Fund Quest has been providing advisory services. For the services rendered, the assessee paid fee in accordance with mutual agreement. In the course of providing advisory services, M/s. Fund Quest is providing certain data of the companies which facilitates the assessee to make investment decisions. The information provided to the assessee by Fund Quest in the form of database is published information which is available in public domain. M/s. Fund Quest has merely compiled the information and transmitted the same to assessee. The authorities below termed the payments made by the assessee to M/s. Fund Quest for the services and data provided as 'Royalty'. We are of the considered opinion that such payments cannot be ter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve decision of the Hon'ble ITAT, the AO is directed to delete the disallowance made u/s.40(a)(ia) of the payment made to Fund Quest. The appellant succeeds on this ground for the assessment years under consideration." 16. Aggrieved by decision of learned CIT(A), the Revenue is in appeal before the Tribunal. The Ld.CIT-DR relied on the assessment order passed by the AO and submitted that the said order passed by tribunal in ITA No. 1774/Mds/2012 dated 19.07.2013 for ay: 2008-09 is not accepted by Revenue and appeal has been filed with Hon'ble Madras High Court. Our attention was drawn to page 13-15 of the PB wherein the order of the tribunal in ITA No. 1774/Mds/2012 is placed. The ld.Counsel for the assessee, on the other hand, submitted before the tribunal that the issue is squarely covered by decision of the tribunal. 17. We have considered rival contentions and perused the material on record included cited case laws. We have observed that the assessee has remitted abroad an amount of Rs. 15,51,269/- in foreign currency to M/s Fund Quest, France towards sub-advisory fees without deducting incometax at source u/s 195 of the 1961 Act which led AO to make additions in the hand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , invention, model, design, secret formula or process or trade mark or similar property ; (ii) the imparting of any information concerning the working of, or the use of, a patent, invention, model, design, secret formula or process or trade mark or similar property ; (iii) the use of any patent, invention, model, design, secret formula or process or trade mark or similar property ; (iv) the imparting of any information concerning technical, industrial, commercial or scientific knowledge, experience or skill ; [(iva) the use or right to use any industrial, commercial or scientific equipment but not including the amounts referred to in section 44BB;] (v) the transfer of all or any rights (including the granting of a licence) in respect of any copyright, literary, artistic or scientific work including films or video tapes for use in connection with television or tapes for use in connection with radio broadcasting, but not including consideration for the sale, distribution or exhibition of cinematographic films ; or (vi) the rendering of any services in connection with the activities referred to in sub-clauses (i) to [(iv), (iva) and](v). Thus, a perusal of the term of 'R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l in nature. The AO referred to amended provisions of Section 32 and 30 of the 1961 Act, wherein expenditure incurred on lease hold premises not owned by tax-payer towards construction of structure or doing of any work in or in relation to renovation or improvement is considered to be capital expenditure and depreciation will be allowed accordingly. The AO observed that this amendment was effective from ay: 1988-89 and thus decision of Hon'ble Supreme Court in the case of CIT v. Madras Auto Services Private Limited 233 ITR 468 relied upon by assessee shall not be relevant as the same deals with pre-amended law. The AO observed that above expenditure incurred by the assessee is not for purposes of current repairs but to get a new advantage by way of interior decoration, extension and renovation of office premises. Thus, as per AO the above expenditure is capital in nature as it will lead to benefit of enduring nature to the assessee . The AO relied upon decision of Hon'ble Delhi High Court in the case of Bigjos India Limited v. CIT reported in 293 ITR 170(Del.). Thus, the AO held that these expenses incurred for interior decoration , extension and renovation of the office premises p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Company Ltd., Vs. ACIT (supra), the Tribunal in the aforesaid order has held as under: 5. We have considered the rival submissions. A perusal of the break up of the expenses which have been disallowed clearly shows that the expenditures are on the interior decorations and creation of the office atmosphere. The expenditure has not resulted in any building coming into existence nor has the existing building been modified or the structure altered. As the existing building has not been altered and there is no change to its structure as a result of the expenditure incurred by the assessee, it cannot be said that the expenditure incurred by the assessee is in the capital field. Further a perusal of the expenditure clearly shows that it is in the revenue field. In the circumstances we are of the view that the expenditure on the repairs and maintenance in the form of electrical fittings, electrification, cabinet, work station, partition, cupboard, stand etc. are liable to be treated as a revenue expenditure. In the circumstances, the orders of the learned CIT(A) and the Assessing Officer are reversed on this issue and the Assessing Officer is directed to grant the assessee the claim of r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nature to the assessee. Each year is a separate unit and the facts may vary from year to year. The learned CIT(A) followed the decision of tribunal for earlier year viz. ay: 2008-09. We have observed that detailed investigation of each of these expenses were not done by authorities below to arrive at decision whether benefit of enduring nature was derived by assessee by incurring these expenses .We are inclined to restore this issue back to file of the AO to look into nature of each of these expenses and then to arrive at decision whether these expenses are to be capitalized or to be held to be revenue in nature, after considering the amended provisions of Section 30 and 32 of the 1961 Act. The decision of Hon'ble Madras High Court in the case of CIT v. ETA Travel Agency Private Limited reported in (2019) 109 taxmann.com 66(Madras) , CIT v. Viswams reported in (2019) 105 taxmann.com 289(Madras) and decision of Hon'ble Bombay High Court in the case of RPG Enterprises Limited v. DCIT reported in (2016) 386 ITR 401(Bom.) are relevant. The assessee is directed to provide details of each of these expenses incurred by it to enable authorities to arrive at decisions whether the expenses w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relevant extract of the section is reproduced herein below: 194H. Any person, not being an individual or a Hindu undivided family, who is responsible for paying, on or after the 1st day of June, 2001, to a resident, any income by way of commission (not being insurance commission referred to in section 194D) or brokerage, shall, at the time of credit of such income to the account of the payee or at the time of payment of such income in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon at the rate of [ten] per cent: The terms commission and brokerage and securities are defined in Explanation to Section 194H. the same are extracted herein under: Explanation - i) "commission or brokerage" includes any payment received or receivable, directly or indirectly, by a person acting on behalf of another person for services rendered (not being professional services) or for any services in the course of buying or selling of goods or in relation to any transaction relating to any asset, valuable article or thing, not being securities"; ii) xxxxxxxxxxxxxxxxxxxx (iii) the expression "securities" shall have the meaning assigne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... engineering, accountancy or technical consultancy. Even an ordinary graduate from humanities group can be a broker. The brokers do not provide any technical know-how either, thus services rendered by them cannot be termed as technical services. We do not concur with the findings of CIT(Appeals) on the issue for the aforesaid reasons. Accordingly, this ground of appeal of the assessee is allowed. 8.3 I have considered the findings of the AO and the written submissions made by the AR. Respectfully following the above decision of the Hon'ble ITAT, the AO is directed to delete the addition made u/s 40(a)(ia) on account of payments made to mutual fund distributors for the assessment years under consideration, The appellant succeeds on this ground for the A.Ys. 2011-12~& 2012-13." Both the rival parties have agreed before the Bench that this issue is squarely covered by decision of the tribunal in assessee's own case in ITA No.1774/Mds/2012 dated 19.07.2013 for ay: 2008-09. However, it was submitted by Ld.CIT-DR that Revenue has not accepted the aforesaid decision of the tribunal and appeal is filed by Revenue before Hon'ble Madras High Court. This position could not be cont ..... X X X X Extracts X X X X X X X X Extracts X X X X
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