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2016 (5) TMI 1535 - ITAT BANGALORETDS u/s 194C - advertising charges - payments made by the respondent-assessee-company to M/s.Bennet, Coleman & Co., for procurement of advertisement agency - Whether advertisement between the assessee and the media (Bennet Coleman) as agent and media and not client and media? - HELD THAT:- Though most of the advertisements belong to respondent-assessee-company’s own business, payments are made in the capacity of an advertisement agency to M/s.Bennet, Coleman & Co., Therefore, circular No.715 dated 8/8/1995 as well as circular No.5 of 2016 dated 29/2/2016 are squarely applicable. No TDS is attracted on payments made by television channels/newspaper companies to the advertising agency for booking or procuring of or canvassing for advertisements. It is also further clarified that 'commission' referred to Question No. 27 of the Board's Circular No. 715 dated 8.8.95 does not refer to payments by media companies to advertising companies for booking of advertisements but to payments for engagement of models, artists, photographers, sportspersons, etc. and, therefore, is not relevant to the issue of TDS referred to in this Circular. ” It is needless to mention that CBDT circulars are binding on the authorities employed for execution of the provisions of the Income-tax Act so long as they are beneficial to the assessee. The said circular is squarely applicable to the facts of the case as impugned payments were made in the capacity of agent to the publisher of newspaper. The mode of discharge of liability has no bearing on the applicability of TDS provisions. Therefore, we do not find fault with reasoning of CIT(A). - Decided against revenue.
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