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TMI Blog2014 (12) TMI 1359X X X X Extracts X X X X X X X X Extracts X X X X ..... ns of section 194J of the Act are not to be invoked with assessee is not making any payments to the stockiests. When the provisions of section 115J are not attracted by such transactions, it is the finding of the Hon‟ble High Court that the question is to whether there is a relationship of principal to principal‟ or relationship of Manager becomes academic. TDS u/s 194J to the payments made by the assessee towards Director‟s Sitting Fees - Non deduction of tds - HELD THAT:-Provisions of section 194J of the Act need not be invoked in respect of the payments made to the Director‟s sitting fees considering the newly inserted provisions of section 194J(1)(ba) of the Act. Accordingly, we grant relief to the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the relationship between the assessee and the stockiest is of principal to principal‟ basis and these facts are identical to the ones already considered and decided by the Tribunal in the case of M/s. Piramal Healthcare Ltd (supra). Para 4.4 and 4.5 of the impugned order are relevant in this regard and the same are reproduced as under: 4.4. I have considered the above submissions of the appellant as well as the facts of the case. I have also considered the decision of the Mumbai ITAT in the case of Piramal Helthcare Ltd (supra) cited by the appellant in this regard. I agree with the appellant that the facts in its case are identical to those in the case of Piramal Healthcare Ltd wherein Mumbai ITAT has held that the payments m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not applicable. Therefore, the demand of tax u/s 201(1) and interest u/s 201(1A) is hereby deleted. 3. Further, Ld Counsel for the assessee brought to our notice the order of the judgment in the case of M/s. Piramal Healcare Ltd (supra) in Income Tax Appeal (L) No.1427 of 2012 and others dated 16.1.2013 and submitted that the relationship between the assessee and the stockiests is in the nature of principal to principal‟ relationship and not that the appointment of the Manager by the assessee. The same was answered by the assessee and against the Revenue. It is the finding of the Hon‟ble High Court that the provisions of section 194J of the Act are not to be invoked with assessee is not making any payments to the stockies ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a‟ to e‟) becomes academic, since, we have already disapproved the appeals of the Revenue for all the four AYs under consideration. Accordingly, ground no.1 with its sub-grounds in all the cross objections for 4 AYs are dismissed as academic. 7. Ground no.2, raised by the assessee in all the Cross Objections for four AYs (except AY 2010-2011), relates to the applicability of provisions of section 194J to the payments made by the assessee towards Director‟s Sitting Fees‟. On facts, the assessee made payments of Director‟s Sitting Fees without making TDS. Assessing Officer raised the demand of tax on these payments u/s 201(1A) of the Act. 8. During the first appellate proceedings, assessee submitted tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... led an order of the ITAT, Pune Bench in the case of Bharat Forge Ltd vs. ACIT [20123] 36 taxmann.com 574 (Pune Trib), dated 31.1.2013 and mentioned (for the AYs 2007-2008 and 2008-2009) that the provisions of section 194J are not applicable in respect of the setting fees paid to the Directors and they do not amount to any professional charges. In this case, fees for technical services and professional services were also examined in respect of any other payments. Ld Counsel for the assessee also brought our attention to para 6 of the said order of the Tribunal and referred to the Memorandum Explaining the provisions of Finance Bill, 2012 in the context of the amendment of clause-(ba) to section 194J of the Act. It underlined the provisions ..... X X X X Extracts X X X X X X X X Extracts X X X X
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