Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (4) TMI 567 - AT - Income TaxTDS u/s 194J - Payments made to pay channels (Royalties & Commission) - Held that:- The view entertained by the assessee that the pay channel charges cannot be considered as royalty is in fact gets support from the decision rendered by Hon'ble Delhi High Court in the' case of Asia Satellite Telecommunication Co. Ltd (2011 (1) TMI 47 - DELHI HIGH COURT ). Though the Explanation 6 to sec. 9(1)(vi) inserted by Finance Act, 2012 is clarificatory in nature, yet in view of the fact that the view entertained by the assessee gets support from the decision of Delhi High Court, referred above, we are of the view that the assessee cannot be held to be liable to deduct tax at source from the Pay Channel Charges. Hence, we are of the view that the assessing officer was not justified in disallowing the claim of pay channel charges by invoking the provisions of sec. 40(a)(ia) Payments to cable operators, Programme & News Expenses, Legal & Professional charges, Rent,Consumables & Cable Laying Charges and Advertisement - TDS liability - Held that:- The disallowance can only be restricted to the out standing amount at the end of the year. To verify the outstanding amount at the end of year the issue is restored to the file of AO for necessary examination and to quantify the disallowance if any. Disallowance of provision of expenses - Held that:- AO’s remand report as extracted by Ld. CIT(A) in para (iv) in page 6 of the order indicate that assessee has not furnished any objections or information regarding the said addition even during the remand proceedings. On what basis, Ld. CIT(A) has restricted the amount only to statutory disallowance u/s. 43B is not known. Unless one examine the nature of expenses, the crystallisation of liability and payment at a later point of time, the same cannot be allowed. Since no details are on record, we have no option than to set aside the order of Ld. CIT(A) on this and restore the same to AO for fresh examination. Needless to say that assessee should be given due opportunity.
|