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2019 (4) TMI 1421 - AT - Income TaxTDS u/s 194J OR 194C - non deduction of tds - disallowance u/s 40(a)(ia) on carriage fees / channel placement fees - HELD THAT - Issue whether carriage fees / channel placement fees paid by the assessee is in the nature of royalty or fees for technical services requiring deduction under section 194J of the Act has come up for consideration in assessee s own case 2016 (1) TMI 213 - ITAT MUMBAI The Tribunal while deciding the issue in unequivocal terms has held that the payment made towards carriage fees / channel placement fees does not partake the character of either royalty or fees for technical services. Thus, the issue having been decided in favour of the assessee.
Issues:
Challenge to deletion of disallowance under section 40(a)(ia) of the Income-tax Act, 1961 for carriage fees/channel placement fees. Analysis: The appeal was filed by the Revenue challenging the deletion of disallowance under section 40(a)(ia) of the Income-tax Act, 1961 for the assessment year 2010-11. The Assessing Officer disallowed an amount debited by the assessee for payment of carriage fees, as tax was deducted at 2% instead of 10% as per section 194J of the Act. The assessee contended that the payment was not in the nature of royalty or fees for technical services, based on previous Tribunal decisions in their favor for similar disputes in other assessment years. The Tribunal considered the submissions and previous decisions in the assessee's own case. It was noted that the Tribunal had previously held that the payment for carriage fees/channel placement fees did not qualify as royalty or fees for technical services, and therefore, the provisions of section 194J were not applicable. The Tribunal upheld the decision of the learned Commissioner (Appeals) to delete the disallowance based on this precedent and dismissed the grounds raised by the Revenue. In conclusion, the Tribunal found that the issue of whether the payment for carriage fees/channel placement fees qualified as royalty or fees for technical services had been settled in favor of the assessee in previous Tribunal decisions. As a result, the Tribunal upheld the decision of the learned Commissioner (Appeals) to delete the disallowance, and the Revenue's appeal was dismissed.
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