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2016 (1) TMI 986 - AT - Income TaxNon deducting of TDS on payment to non-media entity - CIT(A) deleted the addition - Held that:- In the payment which the assessee is making to Radiant Media, the profit element is only in 1% of the payment and if at all the tax is to be deducted it should be deducted on that amount. The assessee has given the details of all the bills filed before the CIT(A) which show that out of the payment of ₹ 8,64,572/- paid by the assessee to the Radiant Media, the Radiant Media earned profit of ₹ 46,266/-. Therefore the assessee should have deducted tax on the amount which has the element of income, which worked out. The Assessing Officer action in treating the whole amount which was paid by the assessee to Radiant Media was not justified as it has already been subjected to deduction of tax at first level by the client and now it is in the form of reimbursement of payment to Radiant Media. The payment in which there is an income element only in the commission of 1% which is part of the payment made by the assessee to the Radiant Media. Accordingly, the disallowance made by the Assessing Officer was rightly restricted by the CIT(A). Therefore, the CIT(A) was justified in deleting the amount made on account of non-deduction of TDS on payment to non-media entity. This reasoned findings of the CIT(A) need no interference from our side. - Decided in favour of assessee.
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