9911796707
TMI Blog2010 (12) TMI 684X X X X Extracts X X X X X X X X Extracts X X X X ..... doing so, the CIT(A) has not examined the applicability of the TDS provisions in relation to contractual payments contained in S.194C of the Act. - Hence, restored the matter to the file of the Assessing Officer, with a direction to examine the applicability of provisions of S.194C and accordingly redecide the applicability of the provisions of S.40(a)(ia) - Revenue's appeal is allowed for statis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of film and processing of file which constitute service also. 4. The CIT(A) has failed to take into account the fact that the assessee ought to have deducted TDS at least at 2% as required u/s. 194C, if not u/s. 194J since these payments are contractual in nature." Thus, the dispute involved in this appeal relates to disallowance made by the Assessing Officer in terms of S.40(a)(ia) of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... warranted, has ignored the fact that the amounts paid by the assessee towards printing and processing charges would at least amount to contractual payments and consequently provisions of S.194C are attracted. Since TDS even in terms of S.194C at 2% was also not effected by the assessee while making the payments towards printing and processing charges, the provisions of S.40(a)(ia) are very much at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee and other material on record. We find that the CIT(A) following the order of the Tribunal in assessee's own case for earlier years, holding that the provisions of S.194J are not applicable to the printing and processing charges paid by the assessee, deleted the disallowance made by the Assessing Officer in terms of S.40(a)(ia) of the Act. While doing so, the CIT(A) has not examined the appl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rds supply of films to the laboratories, and accordingly redecide the applicability of the provisions of S.40(a)(ia) of the Act in relation to such payments, in accordance with law and after giving reasonable opportunity of hearing to the assessee. 6. In the result, Revenue's appeal is allowed for statistical purposes. Order pronounced in the court on 31.12.2010. - - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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