TMI Blog2015 (1) TMI 1422X X X X Extracts X X X X X X X X Extracts X X X X ..... nt made for dubbing work falls under section 194C and not u/s 194I. The Tribunal again in case of UTV Entertainment Television Limited [ 2014 (12) TMI 716 - ITAT MUMBAI] had decided a similar issue as held that assessee had thus carried out the work of dubbing by engaging services and the same was of the nature of getting work done through a sub-contractor. The findings of the CIT(A) in this regard are not in challenge before us. In such circumstances we are of the view that the provisions of section 194C were applicable - CO No. 228, 229/Mum/2013 ITA NO.4197, 2627, 4697/Mum/2012 Assessment year: - 2009-10 - - - Dated:- 14-1-2015 - Shri Vijay Pal Rao And Shri B.R. Baskaran, JJ. Revenue By Shri Vijay K. Bora Assessee By Shri Farokh Irani and Shri Ashish Agrawal ORDER Vijay Pal Rao, These two appeals by the revenue and Cross Objection by the assessee are directed against the two separate orders of CIT(A) dated 30.01.2012 and 30.03.2012 arising from order passed u/s 201 201(1A) for A.Y. 2008-09 and 2009-10 respectively. Common grounds are raised by the revenue in both the appeals. The grounds raised for A.Y. 2008-09 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ervices as defined in the Act and therefore , are within the purview of section 194J of the I. T.Act. 2. The ground no. 1 is regarding applicability of section 194C or section 194J in respect of the payment made to cable operators/DTH operators for channel placement. The assessee is engaged in the business of distribution of television channels. The TV channels are distributed by the assessee through cable operators/MSOs. Due to bandwidth constrains, it was up to the cable operator to decide which channel will reach the end viewer at what frequency (placement). Accordingly, Broadcasters make payments to the cable operator to carry their channels at a particular frequency which is generally referred as carriage fees / placement fees . The payment of placement fee is for placement of channels in prime band to enhance the viewership and further lead to better advertisement revenue for the TV channels. The assessee has deducted tax at source at the rate of 2% u/s 194C of the Act in respect of the said payments made towards placement fee to the cable operators/MSOs. The Assessing Officer held that the payment made towards placement of channels is for providing technical serv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to 18 as under:- 13. After hearing learned counsel for the parties, we are of the view that the contentions of the counsel for the appellant are liable to be rejected. Sec. 194C of the Act creates an obligation on a person responsible for paying any sum specifled therein to a person for carrying out any work, to deduct the tax at source.' Presently, we are concerned with the work' as referred to in cl(b) of Expln. III below s.194C(2)of the Act. 14. In terms of the said Explanation. it is provided that expression 'work' shall include inter alia broadcasting and telecasting including production of programmes for such broadcasting and telecasting. By way of such Explanation, it is evident that where the payment is for a work involving broadcasting and telecasting. the same shall be subject to deduction of. tax at source in tems of section 194 of the Act. the assessee is a cable network operator through which it provides telecasting of programmes to the ultimate consumers/subscribers. The assessee in turn enters into a contract with the licensor of various TV channels. On the payment so made, s. 194C of the Act is attracted. This is for the reason ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g that the Tribunal was correct in holding that the assessee was required to deduct tax at source in terms of s. 194C of the Act on payments made to the licensor for obtaining TV signals. cable TV network owned by the assessee. 7. Thus after examination of the Explanation III to the then section 194C, the Hon'ble High Court held that the payment for obtaining the telecast licenses from the licensor falls under the provisions of section 194C. We find that the work of broadcasting/telecasting including production of programme or such broadcasting or telecasting falls under the definition of work as provided under clause (iv) of the Explanation to section 194C which reads as under:- Explanation - For the purpose of this section - ********************************* ********************************* (iv) work shall include- (a) Advertising; (b) Broadcasting and telecasting including production of programmes for such broadcasting or telecasting (c) Carriage of goods or passengers by any mode of transport other than by railways; (d) Catering; (e) Manufacturing or supplying a produc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax at source under section 194C as payment for work contract as also under section 1941 as payments of fees for professional services. 2. It is hereby clarified that each section, regarding TDS under Chapter XVII, deals with a particular kind of payment to the exclusion of all other sections is this Chapter. Thus, payment of any sum shall be liable for deduction of tax only under one section. Therefore, a payment is liable for tax deduction only under one section. 10. In view of the above discussion as well as the decisions of Hon ble Punjab Haryana High Court and Hon ble Delhi High Court, we do not find any error or illegality in the impugned order of CIT(A) qua this issue. 7. We further note that an identical issue was also decided by the Tribunal in the case of ACIT Vs. NGC Network Pvt. Ltd. in ITA no. 1382/Mum/2014 vide order dated 9-7-2014, wherein the Tribunal has taken the similar view. Accordingly, following the earlier orders of this Tribunal on this issue, we do not find any error or illegality in the order of CIT(A) qua this issue. 8. Ground No. 2 is regarding applicability of section 194J or section 194C in respect of dubbing ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by industry to denote the various services rendered by the dubbing studio. But the real nature of work is a contract for carrying out work. The assessee relied on Explanation to section 194C(7) where at (iv) 'work' would include broadcasting and telecasting including production of programmes for such broadcasting or telecasting. The assessee furnished details of the work carried out by it from Studio 90 Degree which showed that in respect of TV serial Karma the assessee undertook dubbing work. The agreement between the assessee and Turner Entertainment a telecasting Company was also filed. 10. On consideration of the above submissions, the CIT(A) held as follows: 2.3.2 Facts and materials on record are considered. It is seen that Assessing Officer had only asked Appellant to explain the payment but had not specified any evidence to be furnished. The submissions made during the appeal indicate that the studio was hired for utilizing the dubbing facilities which included service through the studio staff. Condition of section 194C(7) Explanation (iv) are met also. As such the payment made was coverable under section 194C under which tax was deduced. On ..... X X X X Extracts X X X X X X X X Extracts X X X X
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