TMI Blog2014 (6) TMI 1X X X X Extracts X X X X X X X X Extracts X X X X ..... n the concerned provision - Thereafter the officer dealing with the matter has to consider the explanation offered by the assessee or the person, as the case may be. An honest belief founded upon reasonable grounds, of the existence of a state of circumstances, which assuming them to be true, would reasonably lead any ordinary prudent and cautious man, placed in the position of the person concerned, to come to the conclusion that the same was the right thing to do - The assessee has given explanation before the authorities that the due to circumstances prevailing and under bonafide belief that tax was not required to be deducted at source U/S.194C on the payments - the non-deduction of tax at source on such payments cannot be said to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation. 4. The assessee carried the matter in appeal but without any success. Therefore, the assessee is in appeal before us. 5. Ld A.R. submitted that the assessee company is registered under the Companies Act and is a cable network operators and is in the business of distributing cable connections to the customers and charges subscription fee from them. The assessee has made payments for air time charges to TV channel owners and the said payments were in the nature of content purchase and the assessee is only a subscriber to the programme which is already being broadcasted and telecasted by different TV channels. The total amount was paid of Rs.5,90,65,030/- for the assessment year 2006-07 and Rs.8,53,85,487/- for the assessment ye ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld D.R. supported the orders of authorities below. 7. We have heard rival contentions and also gone through the order of the ITAT in assessee s own case for the assessment year 2008-09(supra), wherein, the AO during that assessment year has levied penalty on the ground that assessee has made payment to broadcaster of different TV channels as air time charges but failed to deduct the tax at source. Therefore, as per the AO, the assessee is liable to deduct tax at source under section 194C of the Act. Therefore, the AO has raised demand under section 201(1) 201(1A) and assessee has paid the tax. The AO has levied the penalty under section 271C of Rs.15,99,330 and Rs.19,12,635/- for the assessment years 2006-07 and 2007-08, respectively. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... use. It means an honest belief founded upon reasonable grounds, of the existence of a state of circumstances, which assuming them to be true, would reasonably lead any ordinary prudent and cautious man, placed in the position of the person concerned, to come to the conclusion that the same was the right thing to do. The cause shown has to be considered and only if it found to be frivolous, without substance or foundation, the prescribed consequences follow. Now coming to the case on hand, we find that it is the contention of the assessee right from the beginning that the assessee had not deducted tax at source on such payments under the bonafide belief that the payments in question being Air Time Charges paid to TV Channel owners were in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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