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2015 (8) TMI 700 - AT - Income TaxTDS u/s 194C - publishing advertisements in the newspapers - Held that:- The assessee has debited expenditure under the head “advertisement” for an amount of ₹ 19,47,817, out of which ₹ 2,47,731 was paid to the electronic media. The assessee on its own admission stated that payments to three electronic medias to the extent of ₹ 1,80,600 attract deduction of tax u/s 194C. The assessee’s stand that it acted as an agent to its customers and that there is no contractual relation with the newspaper publishers for carrying on the advertisement placed by the assessee is correct. The assessee has a contractual relationship with only clients for providing marriage related services for which the assessee placed matrimonial advertisements in the newspapers. Further, the payments made on behalf of the clients and the payments ranged between ₹ 600 to ₹ 1200 each. Hence it appears that the assessee has placed advertisements from time to time as per requirements of its business. Though, the payments for the entire year was in excess of ₹ 50,000, in the absence of a contractual relationship between the assessee and the publishers, section 194C does not apply to the payments made to the newspaper publishers for the advertisements made by the assessee. - Decided in favour of assessee. Disallowance u/s 40(a)(ia) - assessee paid depository charges without deducting the tax - Held that:- Assessee paid depository charges without deducting the tax and taxes are already paid by the recipient. Since the amount was already paid and the taxes are paid by the recipient, in our opinion, the decision of the Special Bench in the case of Marilyn Shipping & Transports [2012 (4) TMI 290 - ITAT VISAKHAPATNAM] is applicable and by following the decision of the ITAT, Mumbai Benches (supra) we hold that the Tax Authorities have wrongly invoked provisions of section 40(a)(ia) in the instant case. We, therefore, set aside the orders passed by the Tax Authorities disallowing ₹ 6,27,423/-. - Decided in favour of assessee.
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