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DCIT, (OSD) , Circle-8, Ahmedabad Versus M/s Vibrant Advertising Pvt. Ltd.

2016 (1) TMI 986 - ITAT AHMEDABAD

Non deducting of TDS on payment to non-media entity - CIT(A) deleted the addition - Held that:- 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 to be deducted it should be deducted on that amount. The assessee has given the details of all the bills filed before the CIT(A) which show that out of the payment of ₹ 8,64,572/- paid by the assessee to the Radiant Media, the Radiant Media earned profit of ͅ .....

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s 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 of assessee. - ITA No. 2583/Ahd/2012 - Dated:- 8-12-2015 - Shailendra Kumar Yadav, JM And Rajesh Kumar, AM For th .....

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-media entity. 2. On the facts and in the circumstances of the case, the Ld. Commissioner of Income-Tax (Appeals)-XIV, Ahmedabad ought to have upheld the order of the Assessing Officer. 3. It is therefore, prayed that the order of the Ld. Commissioner of Income-Tax (Appeals)-XIV, Ahmedabad may be set-aside and that of the Assessing Officer be restored. 2. The brief facts of the case are that the assessee - an advertising agency - is engaged in the business of advertising and marketing, exclusive .....

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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 t .....

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ia/Newspaper out of which it passes 14% discount to the assessee-company. The bill which is raised by the assessee-company to the client is same which is raised by the newspaper to the Radiant Media and to the assessee. It is only the discount which is subsequently adjusted which gives the profit to the assessee company as well as the Radiant Media. 2.3 In view of these facts, the CIT(A) observed that the payment on account of advertisement which has been received by the assessee from the client .....

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en details of all the bills which has been raised by Radiant to the assessee company and 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 t .....

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