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2017 (1) TMI 955 - AT - Income TaxTDS u/s 194C OR 194J - short deduction of tds - Held that:- Where TDS has been deducted by the deductor in most bona file manner as applicable and no revenue leakage has been pointed out, then the deductor should not be penalized for any unintended short fall in deduction of TDS so long as the payees are income tax assessee and they have included the impugned payments as part of their income offered to tax. In the case before us, the admitted case of the assessee is that all the payees are properly identified and duly assessed with the income tax department. Ld. CIT(A) has already followed this view and accordingly directed the AO to verify these facts and exonerated the assessee from the liability of short fall under such cases. Under these circumstances we uphold the view taken by in this regard by Ld. CIT(A), and direct the AO to exercise his powers under the law to make requisite verification with the payees. If the payee is assessed with the tax department and has filed its income tax return, then liability on account of short deduction of TDS would not be recovered from the assessee. The assessee shall extend requisite cooperation to the AO by submitting complete particulars of the payees containing name, address, PAN No. and copies of invoices. - Decided in favour of assessee for statistical purposes. Payment for utilizing services of production houses - Held that:- Payments made to the production houses towards cost of production of film/advertisement were nothing but contract payments made by the assessee company in pursuance of the purchase orders, and therefore, these would fall within the purview of provisions of section 194C and not u/s 194J of the Act. Payment for AMC services - Held that:- These payments are within the purview of provisions of section 194C of the Act. We find that order of the Ld. CIT(A) is based upon proper reasoning and analysis of facts. Therefore we do not find any justification to interfere in the finding of Ld. CIT(A). Treating payments made towards car parking charges as rent under Section 194I instead of contract payment covered under Section 194C - Held that:- During the course of hearing before us, detailed arguments have been made by the Ld. Counsel. It has also been submitted that AO had not worked out the liability after verifying the facts from the payees. Under these circumstances, we send these issues back to the file of the AO to make direct verification with the payee with the same directions as were given while disposing Ground No 1 of the CO. If need arises, the assessee would be free to take all the legal and factual issues with regard to its liability to deduct tax u/s 194C and not u/s 194I.These grounds may be treated as allowed for statistical purposes.
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