2013 (1) TMI 539

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..... as per the debit note raised by HCA was towards use of the ground along with other facilities which are inseparable from the ground" Facts of the issue briefly are the assessee company is the franchise for the BCCI IPL T20 cricket matches for Hyderabad Deccan Charges Team. In connection with holding T20 cricket matches, the assessee has made payments to various persons. The ACIT, Cir-14(1), Hyderabad who is the AO, after verifying the books of accounts of the assessee found that in respect of certain payments made by the assessee, no tax was deducted at source. The AO therefore issued a show cause notice asking the assessee to show cause as to why it shall not be treated as an assessee in default u/s 201(1) and 201(1A) of the Act for not d .....

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..... l before the CIT (A). 3. In course of hearing before the CIT (A), the assessee reiterated its stand taken before the AO and submitted that the amount of Rs.20 lakhs paid to HCA was not towards the rent for the ground, but towards reimbursement of the expenses incurred for diesel for generators/ lights/ electricity, dressing room facilities/water for pitch preparation/food for media, volunteers, ground staff on match days, practice days and preparation days etc. The CIT (A) after considering the contentions raised by the assessee and examining the records, found that out of total payment made to Rs. 32 lakhs made to HCA though the assessee had deducted tax at source on total payment of Rs.12 lakhs, he has not deducted the tax at source on t .....

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..... provision of section 194C and calculate tax and interest u/s 201(1) and 201(1A) accordingly. 4. The learned DR submitted before us that the contract between the assessee and HCA is a composite contract for use of the cricket ground. Therefore, it has to be treated as rent paid towards the cricket ground along with other facilities, which would attract the provisions of section 194I of the Act. The learned DR therefore argued for restoring the order of the AO. 5. The learned AR reiterating its stand taken before the lower authorities submitted before us that the assessee has no agreement with HCA as it is holding the T20 matches as a franchise of the BCCI. The learned AR submitted that the payment made to HCA as per the debit note was only .....

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