TMI Blog2017 (1) TMI 1030X X X X Extracts X X X X X X X X Extracts X X X X ..... t by the personnel of those studios. The respondent-assessee or her team is not allowed to work with the machine/equipments in the other studios for the specialized activity. This itself would establish that the respondent-assessee has no access to the machinery/equipments for the specialized jobs. Therefore it cannot be said to have hired or taken on rent the machines/equipments for Section 194I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y. Thus not entertained. - Income Tax Appeal No. 1338 of 2014 - - - Dated:- 10-1-2017 - M. S. Sanklecha And A. K. Menon, JJ. Mr. Suresh Kumar for the Appellant. ORDER P. C. 1. This Appeal under Section 260A of the Income Tax Act, 1961 (the Act) challenges the order dated 19th February, 2014 passed by the Income Tax Appellate Tribunal (the Tribunal). The impugned order is in re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aid of other recording/dubbing studios which have necessary equipments for the specialized jobs. The respondent-assessee does not in any way herself use the equipments of the outsourced studios for the specialized job. According to the respondent-assessee the above activity was in the nature of a contract and the tax deducted at source would be at 2% under Section 194C of the Act. The Assessing Of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under Section 194C as has been done. Thus dismissing the Revenue's appeal. (d) The grievance of the Revenue is that the studios to which the work is outsourced for the use of equipments in the studios would be in the nature of rent for the equipments used to carry out the specialized outsourced activity. Therefore the tax has to be deducted at source under Section 194I of the Act. (e) We ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uestion no.(ii): (a) This question now becomes academic in view of the fact that in response to question no.(i) framed herein above, the view of the Tribunal that the payments made by the respondent-assessee to other studios (outsourced studios) for doing a specialized job is in the nature of a contract and falls under Section 194C of the Act for the purposes of tax deduction at source. In the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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