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2015 (12) TMI 139 - AT - Income TaxTDS u/s 194C or u/s 194J - payment of placement charges to cable operator/D.T.H. - Held that:- The issue regarding deduction of tax at source for the payment made to cable operators as placement charges is fully covered in favour of the assessee by the various decisions and also by the Circular no. 720 of 30.08.1995, The Hon'ble Delhi High Court in the case of CIT Vs. Prasar Bharati [2006 (11) TMI 159 - DELHI High Court] on a similar issue has held that Explanation III, which was introduced simultaneously with section 194J, is very specific in its application to not only broadcasting and telecasting but also include "production of programmes for such broadcasting and telecasting" if, on the same date, two provisions are introduced in the Act, one specific to the activity sought to be taxed and the other in more general terms resort must be had to the specific provisions which manifests the intention of the Legislature. It is not, therefore, possible to accept the contention of the Revenue that programmes produced for television, including "commissioned programmes", will fall outside the realm of section 194C, Explanation III of the Act. - Decided against revenue Uplinking charges were liable for deduction of tax at source u/s 194C or 194J - Held that:- In the light of the proposition laid down by the Hon'ble Delhi High Court in the case of CIT Vs. Prasar Bharati [2006 (11) TMI 159 - DELHI High Court], the specific provisions of section 194J are applicable in case of uplinking fees being integral part of the broadcasting and telecasting. Following the Judgment of Hon'ble Delhi High Court in the case of CIT Vs. Prasar Bharati, and other decisions relied upon by the Ld. AR, we do not find any reason to interfere with the order of CIT (A) observing that uplinking was an integral part of broadcasting/telecasting and is covered under the Explanation to section 194C - Decided against revenue Payment for production of programmes for bradcasting and telecasting was liable to tax u/s 194C or 194J - Held that:- The CIT(A) decided the issue in favour of the assessee by following the decision in the case of Prasar Bharati (Broadcasting Corporation of India) (Supra) and CBDT circular dated 30.08.1995 (supra) By holding that the AO was not justified in treating the payments for programmes production as royalty. In any case as also held in the aforesaid judgment provisions of section 194C are more specific as compared to those of section 194J( Since provision of 194C deals with very payment in question- production of programmes and not with general category of payment like fee for technical services or royalty as in section 194J and hence section 194J cannot apply to the payment for production of programmes. Section 194C clearly states that payment for production of programmes constitutes payment for work u/s 194C. Accordingly, applying the said Judgment of the Hoourable Delhi High Court and also relying on CBDT circular, CIT(A) correctly held that provisions of section 194C would prevail over section 194J of the Act in this case.- Decided against revenue
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