2017 (1) TMI 1030

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... r dated 19th February, 2014 passed by the Income Tax Appellate Tribunal (the Tribunal). The impugned order is in respect of Assessment Year 2007-08. 2. This appeal raises the following question of law for our consideration : "(i) Whether on the facts and in the circumstances of the case and in law, the Tribunal was justified in holding that the assessee rightly deducted tax under Section 194C? .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... contract and the tax deducted at source would be at 2% under Section 194C of the Act. The Assessing Officer did not accept the respondent-assessee's contention and held that Section 194I was applicable and in the absence of deduction of tax at source disallowed expenditure under Section 40(a)(ia) of the Act. (b) In appeal, the CIT(A) held that the activity of outsourcing of specialized jobs .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... activity. Therefore the tax has to be deducted at source under Section 194I of the Act. (e) We find that both CIT(A) as well as the Tribunal have recorded a finding of fact that the specialized job which is outsourced to other studios is carried out by the personnel of those studios. The respondent-assessee or her team is not allowed to work with the machine/equipments in the other studios for th .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X