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TMI Blog2013 (12) TMI 1655X X X X Extracts X X X X X X X X Extracts X X X X ..... cal services were involved in payment of carriage charges made by the assessee for broadcasting of the programmes produced by the assessee. The admitted fact was that the assessee produced various types of programmes/serials and news. These were telecast/broadcasted through Multi System Operators for which payments were made to them for which nomenclature used was carriage charges . For this payment tax was deductible u/s 194C explanation iv(b) which is clear from the section itself as cited by the assessee and quoted earlier. Decision in favor of assessee. - Shri Mahavir Singh (Judicial Member) and Shri Shamim Yahya (Accountant Member) Shri P.K. Chakraborty, JCIT, Sr. D.R. , for the Department Shri Sunil Surana, A.R. for the assessee O R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ous parties. The assessee deducted TDS @ 2% on payment made to those parties. Assessing Officer was of the opinion that TDS on payment of carriage fees was to be deducted @ 10% under the provisions of section 194J of the Income Tax Act, 1961. Assessee-respondent in this regard stated that payment of carriage fees is a contractual payment , accordingly TDS should be deducted as per the provisions of section 194C and i t should not be treated as payment for Technical Service rendered by the various parties to whom the payment was made. The assessee in this regard placed reliance on the decision of the Hon ble Punjab Haryana High Court in the case of Kurukshetra Darpan (P) Ltd. vs.- CIT [217 CTR 326. However, Assessing Officer opined that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9 of the I .T. Act, 1961. As per the said definition, the deductee should have rendered managerial , technical or consultancy services but there is no such finding of the AO. The deductee has only telecasted the programmes produced by the assessee. It has been held in the case of DCIT, CIR 4(2), Mumbai , appellant vs.- M/s. NNM Securities Ltd. , Respondent (ITAT) if the assessee is using any facility of any one the same is not technical services. The Hon ble Punjab Haryana High Court has held that telecasting of the programme was covered u/s. 194C. In view of the above the order of the AO is not proper treating the assessee as assessee in default an same is therefore, cancelled. In view of my above decision, I am not inclined to decide the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of in or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct an amount equal to per cent, of such sum as income tax on income comprised therein. We find that the assessee produced various types of programmes/ serials and news and these were telecasted/broadcasted through Multi System Operators for which payments were made to them under the head carriage charges . The assessee has duly deducted and paid tax under section 194C of the Act . We agree with the ld. CIT(Appeals) that no technical services were involved in payment of carriage charges made by the assessee for broadcasting of the programmes produced by the assessee. The assessee produced various types of programmes/serials and news and these were telecast ..... X X X X Extracts X X X X X X X X Extracts X X X X
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