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2015 (4) TMI 719 - ITAT HYDERABADTDS liability from the payments made towards advertisements - CIT(A) confirming the order of the Assessing Officer in demanding tax and interest under section 201(1) and 201(1A) in respect of the payments made to the professionals - Held that:- As decided in Hindustan Coca Cola Beverage P. Ltd. v. CIT [2007 (8) TMI 12 - SUPREME COURT OF INDIA] the circular No. 275/201/95-IT(B) dated January 29, 1997 declares 'no demand visualised under section 201(1) of the Income-tax Act should be enforced after the tax deductor has satisfied the officer-in-charge of TDS, that taxes due have been paid by the deductee-assessee. However, this will not alter the liability to charge interest under section 201(1A) of the Act till the date of payment of taxes by the deductee-assessee or the liability for penalty under section 271C of the Income-tax Act. Hence, we remit the matter to the Assessing Officer to verify as to whether the payee has declared the respective income and paid tax thereon and if so, the assessee shall not be held as "the assessee in default" for the purpose of invoking provisions of sections 201 and 201A. Further, from the details at para 6.3 produced at page 6 of the Commissioner of Income-tax (Appeals) order, we find from the payments made towards advertisement the following do not exceed ₹ 20,000. AO is directed (i) not to apply the provisions of section 194C to the items listed above where payments do not exceed ₹ 20,000 (ii) verify whether tax has been paid by the payee with respect to the remaining payments towards advertisement and thereafter decide the issue in accordance with law. - Decided in favour of assessee for statistical purposes.
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