TMI Blog2016 (1) TMI 986X X X X Extracts X X X X X X X X Extracts X X X X ..... The Assessing Officer action in treating the whole amount which was paid by the assessee to Radiant Media was not justified as it has already been subjected to deduction of tax at first level by the client and now it is in the form of reimbursement of payment to Radiant Media. The payment in which there is an income element only in the commission of 1% which is part of the payment made by the assessee to the Radiant Media. Accordingly, the disallowance made by the Assessing Officer was rightly restricted by the CIT(A). Therefore, the CIT(A) was justified in deleting the amount made on account of non-deduction of TDS on payment to non-media entity. This reasoned findings of the CIT(A) need no interference from our side. - Decided in favour o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IT(A) was not justified in deleting the addition of ₹ 9,66,024/- made on account of non-deduction of TDS on payment to non-media entity; accordingly, the order of the CIT(A) be set aside and that of the Assessing Officer be restored. On the other hand, none appeared on behalf of the assessee; so the matter is being decided on the basis of arguments of Departmental Representative and material available on record. 2.2. We have heard the Departmental Representative and perused the material on record. We find that at appellate stage, the assessee has pointed out that it is merely an agent between the customers who want to give advertisement and the print/electronic media. The payment which the client makes to the assessee is received a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the details at payment made by the assessee to the Radiant Media and further payment made by the Radiant to the press/media. It is seen that the difference is only in the amount of discount which is retained at each level. The assessee-company retains the discount of 14% and the Radiant Media retains the discount of 1% of the total bill raised to the client. Therefore, there is an element of profit only in the payment which is 1% of the total bill raised to the client. Since the original amount has already been subjected to deduction of tax, the profit element in that amount has already been taxed. 2.4 In the payment which the assessee is making to Radiant Media, the profit element is only in 1% of the payment and if at all the tax is t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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