S. MURALIDHAR, J.

The Issue

1. These are seven appeals relating to various Assessment Years filed by the Revenue where one substantial question of law arises, and which has been framed by the order dated 18th September 2012 in ITA No. 384 of 2012, relevant to the Assessment Year (AY) 2005-06, as under:

Did the Tribunal fall into error in holding that the “wheeling charges” paid by the Assessee, in the facts of this case, was deductable as it did not amount to “fees for technical services” within the meaning of Section 194J of the Act.

The BPTA

2. The Respondent Delhi Transco Ltd. (DTL) entered into Bulk Power Transmission Agreement (BPTA) on 21st July 2004 with the Power Grid Corporation India Ltd. (PGCIL). In one of the preamble clauses of the BPTA, it was recorded that DTL “is desirous of receiving energy through power grid transmission system on mutually agreed terms and conditions.” The BPTA defined several terms including the term wheeling as under:

“The operation whereby the distribution system and associated facilities of a transmission licensee or distribution licensee, as the case may be, are used by another person for the conveyance of electricity on payment of cha