Case Law Details
DCIT – TDS Vs Reliance Communications Ltd. (ITAT Mumbai)
The issue under consideration is whether the roaming charges paid by the assessee to the other telecom service provider are in the nature of ‘Fee for technical Services’ and hence liable for deduction of tax at source u/s 194J of the Act?
ITAT states that, even if they consider the observations made by the Apex Court in the case of Bharti Cellular Ltd.supra, whether use of roaming service by one mobile service provider Company from another mobile service provider Company, can be termed as “technical services” or not, is essentially a question of fact. The Tribunal, after considering all the material produced before it, has found that roaming process between participating entities is fully automatic and does not require any human intervention. Coupled with the aspect that the Tribunal has relied upon the decision of the Delhi High Court for taking support of its view. Thus, in the light of the decisions discussed above, ITAT hold that the roaming charges paid by the assessee are not in the nature of ‘fee for technical services’. The ld. Departmental Representative has not brought before us any contrary decision. ITAT find no infirmity in the impugned order. Accordingly, the same is upheld.
FULL TEXT OF THE ITAT JUDGEMENT
This appeal by the Revenue is directed against the order of Commissioner of Income Tax(Appeals) -16, Mumbai (in short ‘the CIT(A)’ dated 31/03/2017 in proceedings arising under sections 201(1)/201(1A) of the Income Tax Act, 1961 (herein after referred to as ‘the Act’).
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