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TMI Blog2018 (5) TMI 1148X X X X Extracts X X X X X X X X Extracts X X X X ..... aw, for our consideration: "(a) Whether on the facts and in the circumstance of the case and in law, the Tribunal is justified in holding that the disallowance of Channel Placement Fee cannot be made u/s. 40(a)(ia) of the I.T. Act when the tax was deducted thereon u/s. 194C instead of Sec. 194J of the I.T. Act? (b) Whether on the facts and in the circumstances of the case and in law, the Tribunal is justified in holding that the Channel Placement Fee is not in the nature of royalty u/s. 9(1)(vi) and so the tax is not required to be deducted u/s. 194J of the I.T. Act despite Explanation 6 thereto inserted w.e.f. 01/06/1976?" 3 Re Question (a): (a) During the subject Assessment Year, the Respondent-Assessee had paid channel placement f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 143(3) r/w. 144C(13) of the Act. Being aggrieved with the Assessment Order dated 20th January, 2014, the Revenue filed an appeal to the Tribunal. By the impugned order dated 9th July, 2014, the Tribunal by following a decision of Coordinate Bench in the case of M/s. Channel Guide India Ltd., v/s. ACIT (ITXA No. 1221/M/2006 rendered on 29th August, 2012) - held that Assessee is not liable to deduct the tax at source, at higher rates only on account of subsequent amendment made in Act, with retrospective effect from 1976. Thus, dismissed the Revenue's Appeal. (d) We find that view taken by the impugned order dated 9th July, 2014 of the Tribunal that a party cannot be called upon to perform an impossible Act i.e. to comply with a pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... can be made in the present facts. (g) In the above view, as it is a self evident position from the reading Section 40(a)(i) of the Act, no substantial question of law. Thus, question (a) not entertained. 4 Re Question (b): (a) In view of the appeal not being entertained on question (a), as pointed out herein above, the issue raised in question(b) becomes academic. This is so, as irrespective of the nature of payment made in the present facts, no expenditure can be disallowed under Section 40(a)(i) of the Act in respect of fee paid for Channel Placement. (b) Thus, question (b) in these facts being academic, does not give rise to any substantial question of law. Thus, not entertained. 5 Accordingly, Appeal dismissed. No order as to c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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