2013 (12) TMI 900

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..... cial Member: The appeal has been filed by the assessee against the order of the Commissioner of Income Tax, Chennai-I dated 16-03-2011 passed u/s. 263 of the Income Tax Act, 1961 (herein after referred to as 'the Act'). 2. The assessee is engaged in providing billing and collection services to M/s. Sun TV Network Ltd. The assessee is collecting subscriptions on behalf of M/s. Sun TV Network Ltd. .....

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..... issued notice u/s. 263 on 28-02-2011. The CIT issued notice on the following grounds: I. "A Sum of Rs. 2,69,44,843/- has been received and transferred by you to Sun TV Newtwork Ltd., without routing through your Profit and Loss Account. II. You have charged service tax on the above subscription receipts from the Cable TV Operators AO has not verified whether the TDS provisions have been applied .....

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..... ons of TDS of Rs. 6,50,910/- supra was allowed without the corresponding income being declared in your Profit and Loss Account. V. There is difference of Rs. 1,80,68,601/- between the income as per TDS certificates and income as per Profit and Loss Account". The assessee filed objections against the issuance of show cause notice but the CIT proceeded on to pass impugned order u/s. 263 of the Act .....

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..... ssion income. M/s. Sun TV Network Ltd., had engaged the services of the assessee for collection of the subscription amount against commission. However, the cable operators at the time of payment of subscription, deducted the tax at source and remitted the remaining amount to the assessee. The subscription collected by the assessee is not its income and hence is not taxable in the hands of the asse .....

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..... sessee is entitled to receive credit of the tax deducted at source u/s. 199 of the Act subject to production of TDS Certificates received from respective deductors. The levy of tax on the commission received would amount to double taxation. 4. The other grounds for invoking the provisions of section 263 are consequential to the main issue discussed above. Since, we are striking the impugned order .....

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