TMI Blog2017 (11) TMI 915X X X X Extracts X X X X X X X X Extracts X X X X ..... finding of fact recorded by the Commissioner (Appeals) on both the aspects on placement fee and subtitling charges, the Appellate Tribunal has noted that both Sections 194C and 194J having introduced into the Income Tax Act on the same day, it is observed that the activities covered by Section 194C are more specific and the activities covered by Section 194J are more general in terms. Therefore, for the activities covered by Section 194C, Section 194J cannot be applied being more general out of the two. We have already discussed in detail the findings of fact recorded by the Commissioner (Appeals) as regards placement fees/ carriage fees. We have agreed with the findings of fact based on material on record that when the payment is made towards standard fee or placement fee, the activity involved is the same in both cases. As stated earlier, when services are rendered as per the contract by accepting placement fee or carriage fee, the same are similar to the services rendered against the payment of standard fee paid for broadcasting of channels on any frequency. In the present case, the placement fees are paid under the contract between the respondent and the cable operators/ MSO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ally deals with the collection and recovery of tax. Section 194C deals with the payment to the contractors while Section 194J deals with fees for professional or technical services. 5. As observed earlier, the Assessing Officer passed an order dated 18th March 2011 under Section 201(1)/ 201(1A) of the Income Tax Act holding that the three items were not covered by Section 194C but by Section 194J. 6. Therefore, a demand of ₹ 1,11,13,964/was raised. Being aggrieved by the said order, an appeal was preferred by the respondent before the Commissioner of Income Tax (Appeals). The appeal preferred by the respondent was partly allowed holding that there was no short deduction of tax by the appellant on account of payment of placement charges, subtitling charges and dubbing charges. An appeal was preferred by the Revenue to the Income Tax Appellate Tribunal, F Bench, Mumbai. By the impugned judgment and order, the appeal preferred by the Revenue was dismissed and the cross objection was held to be academic in nature and therefore, held to be infructuous. 7. The learned counsel appearing for the appellant-Revenue has taken us through the impugned orders. The learned counse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s not come within the purview of section 194C of the I. T. Act, as placing the service of the channel on 'S' Band is a Technical Service for which the TDS is required to be deducted as per the provisions of Section 194J of the I.T.Act instead deducted by the assessee company as per the provisions of section 194C of the I.T.Act, 1961. 10. Thus, we are concerned with three categories of charges i.e. carriage fees, editing expenses and dubbing charges. It is to be noted that the respondent assessee had deducted TDS as per the provision of Section 194C of the said Act. The show-cause notices were issued to the assessee for the Financial Years 200708, 200809, 200910 and 201011. 11. The Assessing Officer held that the placement charges will be governed by Section 194J. Similarly in case of dubbing charges, the same finding was recorded. Even the same view was taken in respect to editing expenses. As stated earlier, the Commissioner (Appeals) (the first appellate authority) interfered in the appeal preferred by the assessee. 12. The first Appellate Authority has made in-depth consideration of the factual aspects. Reference to the factual aspects will be necessary to un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the basis of material on record that the placement charges are consideration for placing the channels on agreed frequency bands. It was found that, as a matter of fact, by agreeing to place the channel on any preferred band, the cable operator does not render any technical service to the distributor/ TV channel. Reference is made to the standard fee paid for basic broadcasting of a channel at any frequency. The Commissioner (Appeals) has considered clause (iv) of the explanation to Section 194C which incorporates inclusive definition of work . Clause (iv) includes broadcasting and telecasting including production of programmes for such broadcasting and telecasting. The Commissioner (Appeals) rightly found that if the contract is executed for broadcasting and telecasting the channels of the respondent, the same would be covered by Section 194C as it falls in clause (iv) of the definition of work . Therefore, when placement charges are paid by the respondent to the cable operators/ MSOs for placing the signals on a preferred band, it is a part of work of broadcasting and telecasting covered by sub-clause (b) of clause (iv) of the explanation to Section 194C. As a matter of fact, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts. As noted earlier, sub-clause (b) of clause (iv) of the explanation to Section 194C covers the work of broadcasting and telecasting including production of programmes for such broadcasting or telecasting. The work of subtitling will be naturally a part of production of programmes. Apart from confirming the finding of fact recorded by the Commissioner (Appeals) on both the aspects on placement fee and subtitling charges, the Appellate Tribunal has noted that both Sections 194C and 194J having introduced into the Income Tax Act on the same day, it is observed that the activities covered by Section 194C are more specific and the activities covered by Section 194J are more general in terms. Therefore, for the activities covered by Section 194C, Section 194J cannot be applied being more general out of the two. 16. In the alternative, a submission was canvassed by the learned counsel for the appellant that the carriage fees or the placement charges are in the nature of commission or brokerage as defined in explanation to Section 194H of the Income Tax Act. Further, in the alternative, it was submitted that carriage fees/ placement charges were in the nature of royalty covered by Se ..... X X X X Extracts X X X X X X X X Extracts X X X X
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