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TMI Blog2015 (10) TMI 2844X X X X Extracts X X X X X X X X Extracts X X X X ..... nue has not pointed any distinguishing features in the present case and that of Hiren Valves (supra) nor has demonstrated as to why the aforesaid decision rendered by the Co-ordinate Bench could not be applied to the facts of the present case. We therefore, hold that no disallowance of expenses u/s. 40(a)(ia) in respect of payment of management fees was called for in the present case. We therefore direct its deletion. Thus the ground of Assessee is allowed. - SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER SHRI S.S. GODARA, JUDICIAL MEMBER) For the Appellant by : Ms. Urvashi Shodhan, AR For the Respondent by :Shri Pradipkumar Majumdar, Sr. D.R. ORDER PER ANIL CHATURVEDI, ACCOUNTANT MEMBER 1. This appeal filed b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on be deleted. It be so held now. 3. Levy of interest u/s 234A, 234B/234C 234D of the Act is unjustified. 4. Initiation of penalty proceedings u/s 271 (l)(c) is unjustified 4. Before us, at the outset ld. A.R. submitted that the solitary issue for consideration is disallowance u/s. 40(a)(ia). 5. During the course of assessment proceedings and on perusing the Profit and Loss account, A.O noticed that Assessee had debited management fee of Rs. 3,51,935/- on which no TDS was deducted. A.O was of the view that Assessee should have deducted tax u/s. 194J of the Act and since Assessee had not deducted TDS on the management fees, the expenditure cannot be allowed. He accordingly disallowed the expenditure u/s. 40(a)(ia) of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the expenditure by invoking the provisions of Section 40(a)(ia) of the Act. It was further submitted that even as per the Explanation to Section 194J, professional services does not bring within its ambit the fees paid to portfolio Manager and therefore no disallowance u/s. 40(a)(ia) was called for. She also placed reliance on the decision of Hiren Valves Pvt. Ltd. ITA No. 411/A/2011 order dated 12.09.2014 and also placed on record the copy of the same. She therefore submitted that the disallowance be deleted. The ld. D.R. on the other hand supported the order of A.O and ld. CIT(A). 8. We have heard the rival submissions and perused the material on record. The issue in the present case, is about the disallowance of expenses u/s. 40( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ervices, 'professional services' means services rendered by a person in the course of carrying on legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or advertising or such other profession as is notified by the Board for the purposes of section 44AA or of this section. 7. The above definition assumes great significance for adjudicating the issue on hand. Fee for professional services-FPS is defined in the Explanation to section 194J of the Act and it is exhaustive definition and of course, with the power to notify the professions. Therefore, the definition is exhaustive in form in view of the use of expression means and inclusive in substa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that market survey has also been notified as professional service within the meaning of section 194J of the Act. In absence of any such material brought before us, in our considered view, market survey is not covered by the provisions of section 194J of the Act. Consequently, the orders of the lower authorities in disallowing the expense of Rs 1,80,000/- are not sustainable. We, therefore, delete the disallowance of Rs 1,80,000/- and allow the ground of appeal of the assessee. 9. Before us, Revenue has not pointed any distinguishing features in the present case and that of Hiren Valves (supra) nor has demonstrated as to why the aforesaid decision rendered by the Co-ordinate Bench could not be applied to the facts of the present case. W ..... X X X X Extracts X X X X X X X X Extracts X X X X
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