ITAT rejects TDS on Power Transmission Charges

The Delhi Bench of the Income Tax Appellate Tribunal dismissed the Revenue's appeal against the order of the CIT(A) deleting a disallowance made for non-deduction of tax at source under Section 194Q on transmission and wheeling charges paid by a power distribution company. 

The Tribunal held that Section 194Q applies only to payments made for the purchase of goods and not to charges paid for electricity transmission and wheeling services.