Deputy Commissioner of Income Tax Circle-7(1)(1), Bangalore V. M/s Technicolor India Pvt Ltd , Bangalore

ITA 883/BANG/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 7401 (ITAT-BANGALORE)
• Duration Of Justice: 6 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-10-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2008-2009
• Appeal Filed On: 21-04-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B R RAMESH JT ITAT; DEV RATHAN KUMAR II ITAT
• Assessee Lawyers: C RAMESH

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : BANGALORE BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER AND SHRI LALIET KUMAR, JUDICIAL MEMBER ITA NOS.883 & 884/BANG/2017 ASSESSMENT YEARS : 2012-13 & 2013-14 THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 7(1)(1), BANGALORE. VS. M/S. TALLY SOLUTIONS PVT. LTD., NO.331-336, RAHEJA ARCADE, 3 RD FLOOR, KORAMANGALA, BANGALORE 560 095. PAN: AAACP 7879D APPELLANT RESPONDENT APPELLANT BY : SHRI DEV RATHAN KUMAR, CIT(DR)-II, ITAT & SHRI B.R. RAMESH, JT. CIT(DR), ITAT RESPONDENT BY : SHRI C. RAMESH, CA DATE OF HEARING : 05.10.2017 DATE OF PRONOUNCEMENT : 31.10.2017 O R D E R PER INTURI RAMA RAO, ACCOUNTANT MEMBER THESE APPEALS ARE FILED BY THE REVENUE DIRECTE D AGAINST THE CONSOLIDATED ORDER OF THE LD. CIT(APPEALS)-7, BENGA LURU DATED 17.01.2017 FOR THE ASSESSMENT YEARS 2012-13 & 2013-14. 2. THE ONLY ISSUE IN THE PRESENT APPEALS IS WHET HER THE TDS PROVISIONS ARE APPLICABLE IN RESPECT OF TELECOMMUNI CATION LEASE LINE CHARGES PAID TO PRIVATE TELEPHONE OPERATORS. THE LD . CIT(APPEALS) FOLLOWING ITA NOS.833 & 834/BANG/2017 PAGE 2 OF 3 THE DECISION OF THE HONBLE MADRAS HIGH COURT IN TH E CASE OF COMMUNICATIONS LTD. & ANR. V. DCIT & ORS., 251 ITR 53 (MAD) AND HUTCHISON TELECOM EAST LTD. IN ITA NO.1101, 1102, 1 291 & 1292(KOL) OF 2005 HELD THAT THE PROVISIONS OF SECTION 194J ARE NOT AP PLICABLE IN RESPECT OF PAYMENTS MADE FOR LEASE LINE SERVICES, AS THEY C ANNOT BE TREATED AS CHARGES FOR PROFESSIONAL SERVICES OR TECHNICAL SERV ICES AS CONTEMPLATED U/S. 194J OF THE ACT. THE DECISION OF THE CIT(APP EALS) IS IN CONSONANCE WITH THE RATIO LAID DOWN BY THE HONBLE HIGH COURT OF MADRAS IN THE CASE OF COMMUNICATIONS LTD. & ANR. V. DCIT & ORS., (SUPRA) AND THE HONBLE DELHI HIGH COURT IN THE CASE OF CIT V. ESTEL COMMUNICATIONS (P) LTD., 318 ITR 185 (DEL) . THEREFORE, WE DO NOT FIND ANY FALLACY IN THE REAS ONING OF THE CIT(APPEALS). HENCE, THE APPEALS FILED BY THE REVE NUE ARE DISMISSED. PRONOUNCED IN THE OPEN COURT ON THIS 31 ST DAY OF OCTOBER, 2017. SD/- SD/- ( LALIET KUMAR ) ( INTURI RAMA RAO ) JUDICIAL MEMBER ACCOUNTANT MEMBER BANGALORE, DATED, THE 31 ST OCTOBER, 2017. / D ESAI S MURTHY / ITA NOS.833 & 834/BANG/2017 PAGE 3 OF 3 COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY ITAT, BANGALORE.