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TMI Blog2015 (4) TMI 719X X X X Extracts X X X X X X X X Extracts X X X X ..... axes due have been paid by the deductee-assessee. However, this will not alter the liability to charge interest under section 201(1A) of the Act till the date of payment of taxes by the deductee-assessee or the liability for penalty under section 271C of the Income-tax Act. Hence, we remit the matter to the Assessing Officer to verify as to whether the payee has declared the respective income and paid tax thereon and if so, the assessee shall not be held as "the assessee in default" for the purpose of invoking provisions of sections 201 and 201A. Further, from the details at para 6.3 produced at page 6 of the Commissioner of Income-tax (Appeals) order, we find from the payments made towards advertisement the following do not exceed ͅ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Income-tax Act in respect of the payments made to the professionals. 3. Since the facts in all the four appeals are identical, we are narrating the facts as in I. T. A. No. 230/Hyd/2014 Mahabubnagar Municipality is a local authority of the Government of Andhra Pradesh. There was a TDS survey under section 133A in the premises of the assessee on February 16, 2009 to verify the compliance of TDS provisions. During the survey it was found that the assessee did not deduct TDS on contract payment, rent and on professional charges. Thereafter, TDS assessments were completed on March 23, 2011 for all the four assessment years 2006-07, 2007-08, 2008-09 and 2009-10. 4. During the course of appellate proceedings, the assessee submitted additi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Telugu Frontline 25,000 0 0 0 7. Mahaboomi 0 3000 18,000 0 8. Munisif 0 38,800 26,000 0 9. Mahabubnagar Times 0 6,000 0 0 10. Rehaman Deccan 0 10,580 0 0 11. Vartha 0 4,000 31,500 29,570 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eir respective returns. 6. The Commissioner of Income-tax (Appeals) observed that as per Board's Circular No. 715 dated August 8, 1995 payments made to advertising agencies are clearly held liable to TDS. Question No. 1 of the said circular dealing with the subject of Advertising reads as under (page 12) : Question 1 : What would be the scope of an advertising contract for the purpose of section 194C of the Act ? Answer : The term 'advertising' has not been defined in the Act. During the course of the consideration of the Finance Bill, 1995, the Finance Minister clarified on the floor of the house that the amended provisions of tax deduction at source would apply when a client makes payment to a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on as to whether TDS has been paid by the payee and also to identify the cases for which the provisions of TDS will not be applicable as the payment do not exceed ₹ 20,000. 11. The learned Departmental representative did not object to the issue being sent back to the Assessing Officer for the purpose of verification. 12. We have heard both parties. In the case of Hindustan Coca Cola Beverage P. Ltd. v. CIT [2007] 293 ITR 226 (SC) at para 10 it has been held as follows (page 230) : Be that as it may, Circular No. 275/201/95-IT(B) dated January 29, 1997, issued by the Central Board of Direct Taxes, in our considered opinion, should put an end to the controversy. The circular declares 'no demand visualised un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Mahaboomi 3,000 18,000 5. Mahabubnagar Times 6,000 6. Rehaman Deccan 10,580 7. Vartha 4,000 8. Sahara India 5,000 9. Kasturi 10,000 14. The Assessi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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