Iapl/147/2018 Of Commissioner Of Income Tax (Tds), Kanpur v. The Registrar, Csjm University, Kalyanpur

Case :- INCOME TAX APPEAL No. - 147 of 2018 Appellant :- Commissioner Of Income Tax (Tds), KanpurRespondent :- The Registrar, Csjm University, KalyanpurCounsel for Appellant :- Shubham Agrawal Hon'ble Pankaj Mithal,J.Hon'ble Pankaj Bhatia,J. Heard Sri Shubham Agrwal, learned counsel for theappellant, Income Tax Department. The appellant has preferred this appeal against thejudgement and order dated 03.08.2018 of the Income TaxAppellate Tribunal Lucknow Bench. The facts of the case reveal that the Assessee-Universityconducts examinations through various colleges affiliatedto it. The affiliated colleges function as the examinationcentre. These affiliated colleges/centres in holding theexaminations incur various types of expenditure bothadministrative and procedural.The Assessee-Universityreimburse these expenses to the affiliatedcolleges/centres. In the assessment years 2007-08 the Assessing Officercreated the demand of Rs.52,11,038/- on account of non-deduction of tax under Section 194J of the Income TaxAct, 1961 (hereinafter referred to as the Act). The appealof the Assessee-University was dismissed by the CIT(Appeal) whereupon further appeal was preferred to theTribunal which has been allowed. The Assessing Officer as well as the Appellate Authorityhas held that the amount so reimbursed by the Assessee-University to the affiliated colleges are in respect servicesof professional or technical experties which are coveredunder Section 194J of the Act. The Tribunal in considering the matter held that no doubtthe payment of expenditure incurred by the affiliatedcolleges/centres is reimbursable but there is noinvolvement of professional or technical experties. Theaffiliated colleges/centres do not render any technicalservices in conducting of the examination. The Tribunalfurther observed that the revenue in the past and in thesubsequent years has never raised such an objection. Thus, in the absence of any material to establish that theaffiliated colleges/centres were rendering services ofprofessional or technical nature in the matter ofconducting the University's examination, we are of theopinion that the Tribunal has not committed any error oflaw in holding that the tax was not deductable on suchreimbursement under Section 194J(b) of the Act. In view of the aforesaid facts and circumstances, we areof the opinion that no substantial question of law arises inthis appeal worth consideration by this court. The Appeal as such is devoid of merit and is dismissed. Order Date :- 5.12.2018piyush