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2019 (8) TMI 111 - BOMBAY HIGH COURTDeduction of TDS u/s 194C or 194J - advertisement to Google & Facebook - orders passed u/s 201 (1) / 201 (1A) - payments to the agencies for such services provided relating to advertising by creative and production work, media planning etc. - breach of principles of natural justice - it comes out that such material exparte collected by the ITO (TDS) was ever put to the Petitioner before the final orders were passed - AO given detailed observation regarding How Google and facebook ads work for its clients but not provided to the petitioners HELD THAT:- We do not grudge, the ITO (TDS) carrying out such research, devoting time and energy in doing so nor do he find anything objectionable about his final order based on such information which he may from reliable and legitimate sources collect. Nevertheless, none of this would be permissible without following the principles of natural justice. The least that he was expected to do was to share such material with the Petitioner giving an opportunity to rebut the same if so desired by the Petitioner. By suggesting that the Petitioner is already engaged in the same business and therefore would be aware about intrinsic nature services rendered, is begging the question. In plain terms, the impugned orders cannot survive the test of following principles of natural justice. In the result, the orders are quashed only on this ground. Since the declaration of non deduction on payments, which according to the Petitioner had not accrued is in any case small element of the entire amount, we have not expressed any opinion on the same. However, the impugned orders being composite, it would be pointless to split it in two parts, first part for enabling the Petitioner to file Appeal and the other part remanding for fresh consideration. - Petition disposed off accordingly.
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