2022 (7) TMI 595

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..... and unjust. 2. The Commissioner of Income Tax (Appeals) erred in treating the advertisement charges paid to media directly without considering the documents submitted before him along with arguments notes and grounds of appeals. 3. Treating the payment made to the advertising media like Mathrubhumi, The Madhyamam directly as a payment to contractors and treating the payment made to contractors and treating the appellant as an assessee in default and demanding tax and interest in respect of such payment under section 201 is arbitrary and unjust. 3. Considering the fact that the payments made are within the permissible limits as provided under section 194C of the Income Tax Act 1961 the Assistant Commissioner of Income tax erred in h .....

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..... of the Act in the cases wherein single payment of more than Rs.30,000/- and the cumulative payment above Rs.1,00,000/- were paid. Relying on the Circular No. 5 of 2002 dated 30.07.2002 the AO held that the assessee was bound to deduct the required taxes but the assessee failed to do so. Therefore the assessee was held as an assessee in default. Aggrieved by the order of the AO the assessee filed appeal before the CIT(A). The CIT(A) deleted the addition made towards non-deduction of TDS under the head Professional Charges under Section 194J of the Act but he uphold for the non-deduction of tax at source for payment of advertisement charges under Section 194C of the Act,accordingly partly allowed the appeal of the assessee. Aggrieved, assess .....

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..... of submitted by the assessee for complying the proviso of Section 201(1) of the Act. Therefore, considering the totality of the facts and circumstances of the case we consider it fit to send back the matter to the file of the AO for verification if the recipients have fulfilled the conditions of the proviso ofSection 201(1) of the Act and if the AO finds as per the proviso of Section 201(1) of the Act then the assessee shall not be treated as assessee in default. We make it further clear that interest shall be charged as per Section 201A(1) of the Act. Needless to say the assessee should be provided reasonable opportunity of hearing and the assessee is directed to file the necessary documents for substantiating his case. The assessee is als .....

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