TMI Blog2013 (9) TMI 960X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act – Held that:- Assessee acted as sub agent and whatever amount was received from the client the same was paid to the five agencies, who in fact deducted the TDS from the payment - Assessee acting as sub agent was not supposed to deduct TDS from the payment so made to various advertising agencies as per the provisions of Section 194C of the Act - Various advertisement agencies of whom the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssing Officer. 2. The facts leading to the present Tax Appeal in a nutshell are as under; 3. The assessee was engaged in the business of advertising working as an agent in some newspapers. During the assessment proceedings with respect to the Assessment Year in question the Assessing Officer observed that the assessee claimed the advertisement expenses of Rs.1,07,12,129/- to various parties in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct. 4. Being aggrieved and dissatisfied with the order passed by the Assessing Officer in disallowing the aforesaid expenses and adding to the income of the assessee under Section 40(a)(ia) of the Act, the assessee preferred appeal before the CIT(A) and the CIT(A) by order dated 16/07/2009 allowed the appeal by observing in paragraph 4.2 as under; I have considered the facts of the case, argu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot supposed to deduct TDS from the payments so made to various advertising agencies as the provisions of Section 194C of the Act are not attracted. In the given facts and circumstances, I am of the view that the AO was not justified in disallowing the claim of the appellant under Section 40(a)(ia) of the IT Act, 1961. Hence, I am of the view that the AO was not justified in making the addition on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted the TDS from the payment, both the CIT(A) as well as ITAT have rightly held that the assessee acting as sub agent was not supposed to deduct TDS from the payment so made to various advertising agencies as per the provisions of Section 194C of the Act. As stated hereinabove and even the finding given by the CIT(A) as well as the ITAT, various advertisement agencies of whom the assessee worked a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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