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2017 (1) TMI 1030 - HC - Income TaxTDS u/s 194I or 194C - whether the Tribunal was justified in holding that the assessee rightly deducted tax under Section 194C? - Held that:- We find that both CIT(A) as well as the Tribunal have recorded a finding of fact that the specialized job which is outsourced to other studios is carried out by the personnel of those studios. The respondent-assessee or her team is not allowed to work with the machine/equipments in the other studios for the specialized activity. This itself would establish that the respondent-assessee has no access to the machinery/equipments for the specialized jobs. Therefore it cannot be said to have hired or taken on rent the machines/equipments for Section 194I of the Act to apply. In the above view, the concurrent findings of fact rendered by the CIT(A) and the Tribunal, no substantial question of law arises as it is not shown to be perverse in any manner. Thus not entertained. Whether the Tribunal was justified in holding that the short deduction of tax does not attract disallowance under Section 40(a)(ia)? - Held that:- The view of the Tribunal that the payments made by the respondent-assessee to other studios (outsourced studios) for doing a specialized job is in the nature of a contract and falls under Section 194C of the Act for the purposes of tax deduction at source. In the above view, there is no short deduction of tax thus there is no occasion to examine and consider the question of the consequence of short deduction of tax, if any. Thus not entertained.
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