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Tax Publishers 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)

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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)