TDS applicability on transmission/wheeling charges
Facts:
Assessee
was slapped with disallowance for non-deduction of TDS on the power
transmission/wheeling charges that it had to pay to the Electricity board. It
was the case of the revenue that this constituted use/renting of
equipment's owned and controlled by the Electricity
board/Tranmission entity thus warranted TDS under section 194I. On appeal
CIT(A) reversed the disallowance citing that no TDS was applicable either
under Section 194C or under 194I on the same as it was use of an utilitarian
facility. On further appeal by the revenue -
Held
against the revenue that power transmission/wheeling charges are outside the
scope of TDS under section 194C or under 194I.
Applied:
(i) CIT v. Delhi Transco Ltd. (2016) 380 ITR
398 (Del.) : 2015 TaxPub(DT) 3046 (Del-HC)
(ii) CIT v. Maharashtra State Electricity
Distribution Co. Ltd. (2015) 375 ITR 27 (Bom.)
(iii) Auro Mira Biopower India (P) Ltd. v.
ITO (2014) 42 CCH 141 (Chen. Trib.), in ITA No. 2584 to 2590/Mds/2014 dt. 12-12-2014
(iv) Noida Power Co. Ltd. v. ACIT (2018) 52
CCH 196 (Del. Trib.); ITA No. 4878/Del/2016 dt. 19-03-2018 : 2018 TaxPub(DT)
1774 (Del-Trib)
(v) GRIDCO Ltd. v. ACIT in ITA No.
404/Ctk./201 1 dt. 17-11-2011; (2011) 30 CCH 578 (Cuttack) (Trib.) : 2012
TaxPub(DT) 0681 (Ctk-Trib)
(vi) Chhattisgarh State Electricity Board v.
ITO (2012) 143 TTJ 151 (Mum.) in ITA No. 20 to 23/BLPR/2010, dt. 30-11-2011 :
2012 TaxPub(DT) 0902 (Mum-Trib)
(vii) DCIT v. Reliance Infrastructure Ltd.
(2017) 50 CCH 78 (Mum. Trib.) ITA No. 1422/Mum/2015 and 1480/Mum/2015 dt. 02-06-2017.
(viii)
ITO v. Hindustan Zinc Ltd. (2013) 37 CCH 522 (Jodh. Trib.); ITA No. 488 to
491/Jodh/2010 dt. 30-08-2013 : 2014 TaxPub(DT) 2175 (Jod-Trib).
Case: Asstt. CIT v. Chhattisgarh Steel & Power Ltd. 2023 TaxPub(DT)
4384 (Raipur-Trib)