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2017 (1) TMI 572 - AT - Income TaxTDS u/s 194C or 194J - payment on account of placement charges - short deduction of tds - rendering of services by the cable operators/MSO’s - invocation of section 201(1)/201(1A) - Held that:- On verification of various clauses of such agreements which were found to be similarly worded it is seen that the Broadcasters are paying carriage fees not just for the purpose of utilizing the services of cable operators for transmitting its Channels but for placing its channels on price bands. The placement of channels on prime bands is the crux of the entire contract agreements and the payments made are directly in relation to fulfillment of condition of placement of channel in such prime band. It is worth mentioning that as is clear from nature of services rendered by cable operators as mentioned in preceding paragraphs, the payment on account of placement charges may be said to be in nature of commission as defined in Explanation to section 194H of the Income-tax Act, 1961. In view of the nature of services provided it is clear that the Cable Operators / Multi System Operators facilitates delivery of products of the broadcaster to the viewer and thus viewed this is the payment is in the nature of commission or brokerage as defined in Explanation to section 194H of the Income-tax Act,1961. There is uncontroverted finding in the impugned order that the assessee has already deducted TDS under section 194C of the Act on placement fee, therefore, we are in agreement with the stand of the Ld. Commissioner of Income Tax (Appeals) that the assessee may not be treated as assessee in default under section 201(1)/201(1A) of the Act as there is no short deduction of tax by the assessee, consequently, we affirm the stand of the Ld. Commissioner of Income Tax (Appeals). - Decided in favour of assessee
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