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2009 (6) TMI 622 - AT - Income TaxTDS - Contractor or professional fees - So far as Section 194 J is concerned, the Ld. CIT(A) has held that two Sections cannot be applied if it is held that the payment is covered u/s. 194C, then again, the A.O cannot treat the said payment as a payment attracting the provisions of Section 194J also - no relationship of a 'Principal' and a 'contractor' is created between the assessee company and film producers/contractors, but all agreements are finance agreements with unique features to participate in the surplus by taking the risk of the losses also - the agreements entered into between the assessee company and producers and directors of the different films and T.V. Serials are in the nature of finance agreements, the said are out of the provisions of Section 194C - Even if the assessee has made payment directly to any actor or director or any person connected with the film making then it is only out of the composite agreement entered into for financing the film project and it cannot be said that the payment made directly by the assessee company attracted the provisions of Section 194J Assessee is not a deemed defaulter u/s. 201(1) of the Act, there is no question of levy of interest also u/s. 201(1A) of the Act - In the result, all the appeals of the assessee are allowed
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