TMI Blog2023 (3) TMI 1058X X X X Extracts X X X X X X X X Extracts X X X X ..... ising agency for booking or procuring of or canvassing for advertisements. It has been further clarified that the word commission referred to Question No.27 of the Board s Circular No.715 dated 8th August, 1995 does not refer to payments by media companies to advertising companies for booking of advertisements but to payment for engagement of models, artists, photographers, sportspersons, etc. and, therefore, is not relevant to the issue of TDS referred in this Circular. Thus, the legal position as understood by the CBDT is clearly in favour of the respondent/assessee. Tribunal correctly held that it is clear that there is no principal and agent relationship between the newspaper and the advertising agency. Thus, both on facts as we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lowing decisions which refers in favour of the respondent/assessee. First of the decision was in the case of CIT Vs. Living Media India Limited in ITA No.1264 of 2007 passed by the High Court of Delhi dated 6th May, 2008. The Court analysed an identical arrangement of the respondent/assessee in various advertising agencies and the control exercise by the Indian Newspaper Society (INS) and held that no tax need to be deducted at source under the provisions of Section 194H of the Act. The second decision which will enure in favour of the respondent/assessee is the decision of the High Court of Allahabad in Jagran Prakashan Ltd. Vs. Deputy Commissioner of Income Tax (TDS), reported in (2012) 345 ITR 288 (All.). The third decision is of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... decision and the case of Prasar Bharati is clearly distinguishable and not applicable to the facts and circumstances of the case on hand. More importantly after the decision of Jagran Prakashan and the decision of Living Media India Limited, the CBDT issued Circular being No.5 of 2016 dated 29th February, 2016. For better appreciation, the entire Circular is quoted hereunder : The issue of applicability of TDS provisions on payments made by television channels or media houses publishing newspapers or magazines to advertising agencies for procuring and canvassing for advertisements has been examined by the Board in view of representations received in this regard. 2. It is noted that there are two types of payments involved in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n Prakashan Ltd. And Delhi High Court in the matter of Living Media Limited and it was held in both the cases that the relationship between the media company and the advertising agency is that of a principal-to - principal and, therefore, not liable for TDS under section 194H. The SLPs filed by the Department in the mater of Living Media Ltd. And Jagran Prakashan Ltd. Have been dismissed by the Supreme Court vide order dated 11-12-2009 and order dated 5-5-2014, respectively. Though these decisions are in respect of print media, the ratio is also applicable to electronic media/television advertising as the board nature of the activities involved is similar. 5. In view of the above, it is hereby clarified that no TDS is attracted on p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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