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2013 (10) TMI 593 - ITAT AGRATDS deduction u/s 194C - distribution of signals - distribution of television channels through the distribution system. - sequence of transaction i.e. channels - assessee - cable operator - customers. - Relationship of manufacturer and distributors or contractor and subcontractor - Held that:- For the purpose of distributing subscribed channels, the assessee approached Star India Pvt. Ltd. - assessee is to distribute the subscribed channels in its entirety as it is delivered by Star India Pvt. Ltd. without any cutting, editing, dubbing, scrolling or ticker tape, voice-over, sub title, substituting or any other modification, alternation, addition, deletion or variation. The Star India Pvt. Ltd. is the owner/broadcaster of the subscribed channels as it is provided clearly in clause 9(c) of the agreement. In other words, broadcasting and telecasting work was to be done only by Star channels and others and not by the assessee. The assessee is to distribute the signals without any alteration and modification. The assessee is not authorized to produce any programme and not to broadcast and telecast any programme at the level of the assessee. The assessee is not authorized to change either in programme or create or produce any programme of his own. As regards the judgement of Hon'ble Punjab & Haryana High Court in the case of Kurukshetra Darpans (P) Ltd. vs. Commissioner of Income Tax, [2008 (3) TMI 48 - High Court Punjab and Haryana] relied upon the Revenue, the same distinguishable on facts as in that case the cable operator was engaged in broadcasting and giving signals to the customers whereas in the case under consideration the assessee received packed signal from channels i.e. Star TV and others and giving to cable operator without modification. It is a case of simple using of plant & machinery i.e. DSR Digital Satellite Receiver for the purpose of distribution and transmission of signals against payment and while making such payment, we are of the considered view that section 194C of the Act including Explanation (iv)(b) of Section 194C is not applicable. Since section 194C is not applicable, the assessee is not liable to deduct tax at source - Decided against Revenue.
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