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2017 (11) TMI 1154 - AT - Income TaxTDS u/s 194J - Non Deduction of tax at source on payments made to faculty members - CIT-A allowed claim - Held that:- Commissioner of Income Tax(A) has held that in view of the judgments of Hon’ble Delhi High Court in the case of Commissioner of Income Tax vs NIIT (2009 (9) TMI 42 - DELHI HIGH COURT) and CIT vs Career Launcher India Ltd. (2012 (4) TMI 440 - DELHI HIGH COURT), tax u/s 194J was not deductible at source. However, the fact remains that the assessee’s plea of profit sharing with the faculty members is not evident from the facts on record. The ld. Commissioner of Income Tax(A), while deciding the issue in favour of the assessee, has not made reference to any document or evidence which enabled him to reach the conclusion that the faculty members were franchisees of the assessee company and not its employees. Although the ld. Commissioner of Income Tax(A) has held that the faculties were associated with the assessee on a revenue sharing basis, no evidence has been forthcoming from the assessee to justify this claim We are of the view that the ld. Commissioner of Income Tax(A) has not examined the issue in proper perspective and the relief has been granted to the assessee only on the basis of written submissions made before him. We are of the considered opinion that the issue needs reexamination. As no evidence has been filed before us, it would be in the fitness of things if the issue is restored to the file of the ld. Commissioner of Income Tax(A) to examine this issue de novo and adjudicate on the same after considering evidences which the assessee may like to produce before him in this regard. - Decided in favour of revenue for statistical purposes.
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