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2020 (1) TMI 357 - HC - Income TaxTDS u/s 194C OR 194J - Short deduction of tds - services of Uplinking, Bandwidth Services, Air Time and Channel Carriages to Multi System Operators - whether the payments made by the assessee to the companies with which it had entered into contracts can be said to be remuneration for the rendering of any managerial, technical or consultancy services? - HELD THAT:- The deductees in the instant case simply carried out a contractual work of up-linking and broadcasting programmes made or produced by the assessee in the electronic media by permitting the assessee to avail the benefit of requisite electronic set up against payment of a fee. It is purely contractual in nature and the assessee has the right to use the set up only so long as the contract subsists and the facilities offered by the deductees do not amount to providing ‘technical services’ and hence, the payments they received from the assessee cannot be termed as ‘fees for technical services’. Therefore, Section 194J is not attracted. It is Section 194C which would apply to the facts of case. The definition of ‘work’ under that Section is inclusive and specifically includes broadcasting and telecasting. The deductees do broadcasting and telecasting work for the assessee and therefore, Section 194C would apply to the facts of this case. The assessee rightly deducted tax at source at the rate prescribed in Section 194C of the Act and there is no short deduction. We find no infirmity in the order under appeal. Imposition of penalty on the assessee by the Assessing Officer is not defensible. The relevant tax records of the deductee companies were produced and the CIT found that the said companies have paid entirety of the tax payable after giving credit for the tax deducted at source. It is not that because of the assessee making deductions under Section 194C, the Revenue has suffered any loss. In the case of Hindustan Coca Cola Beverages Pvt. Ltd. v. Commissioner of Income Tax, [2007 (8) TMI 12 - SUPREME COURT] , the Hon’ble Supreme Court noted Circular no.275/201/95-IT (B) dated January 29, 1997, issued by the Central Board of Direct Taxes. The said circular declares that no payment visualized under Section 201(1) of the Income Tax Act should be enforced after the tax deductor has satisfied the Officer-in-Charge of TDS that taxes due have been paid by the deducte-eassessee.
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