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TMI Blog2015 (1) TMI 1422X X X X Extracts X X X X X X X X Extracts X X X X ..... l issue was considered and decided by this Tribunal in the case of ACIT Vs. Manish Dutt [ 2012 (7) TMI 186 - ITAT MUMBAI] wherein it was held that the payment made for dubbing work falls under section 194C and not u/s 194I. The Tribunal again in case of UTV Entertainment Television Limited [ 2014 (12) TMI 716 - ITAT MUMBAI] had decided a similar issue as held that assessee had thus carried out the work of dubbing by engaging services and the same was of the nature of getting work done through a sub-contractor. The findings of the CIT(A) in this regard are not in challenge before us. In such circumstances we are of the view that the provisions of section 194C were applicable X X X X Extracts X X X X X X X X Extracts X X X X ..... in the purview of section 194J of the I. T.Act." 2. The ground no. 1 is regarding applicability of section 194C or section 194J in respect of the payment made to cable operators/DTH operators for channel placement. The assessee is engaged in the business of distribution of television channels. The TV channels are distributed by the assessee through cable operators/MSOs. Due to bandwidth constrains, it was up to the cable operator to decide which channel will reach the end viewer at what frequency (placement). Accordingly, Broadcasters make payments to the cable operator to carry their channels at a particular frequency which is generally referred as 'carriage fees'/'placement fees'. The payment of placement fee is for placement of channels in prime band to enhance the viewership and further lead to better advertisement revenue for the TV channels. The assessee has deducted tax at source at the rate of 2% u/s 194C of the Act in respect of the said payments made towards placement fee to the cable operators/MSOs. The Assessing Officer held that the payment made towards placement of channels is for providing technical services to the assessee and, therefore, the said payment ought to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ontentions of the counsel for the appellant are liable to be rejected. Sec. 194C of the Act creates an obligation on a person responsible for paying any sum specifled therein to a person for carrying out any work, to deduct the tax at source.' Presently, we are concerned with the work' as referred to in cl(b) of Expln. III below s.194C(2)of the Act. 14. In terms of the said Explanation. it is provided that expression 'work' shall include inter alia broadcasting and telecasting including production of programmes for such broadcasting and telecasting. By way of such Explanation, it is evident that where the payment is for a work involving broadcasting and telecasting. the same shall be subject to deduction of. tax at source in tems of section 194 of the Act. the assessee is a cable network operator through which it provides telecasting of programmes to the ultimate consumers/subscribers. The assessee in turn enters into a contract with the licensor of various TV channels. On the payment so made, s. 194C of the Act" is attracted. This is for the reason that the licensor. is a person who is performing the work which is covered within the meaning of c1. (b) of Ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ayments made to the licensor for obtaining TV signals. cable TV network owned by the assessee." 7. Thus after examination of the Explanation III to the then section 194C, the Hon'ble High Court held that the payment for obtaining the telecast licenses from the licensor falls under the provisions of section 194C. We find that the work of broadcasting/telecasting including production of programme or such broadcasting or telecasting falls under the definition of "work" as provided under clause (iv) of the Explanation to section 194C which reads as under:- "Explanation - For the purpose of this section - ********************************* ********************************* (iv) "work" shall include- (a) Advertising; (b) Broadcasting and telecasting including production of programmes for such broadcasting or telecasting (c) Carriage of goods or passengers by any mode of transport other than by railways; (d) Catering; (e) Manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from such customer, But does not include manufacturing or supplying a product according to the requirement of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th a particular kind of payment to the exclusion of all other sections is this Chapter. Thus, payment of any sum shall be liable for deduction of tax only under one section. Therefore, a payment is liable for tax deduction only under one section. 10. In view of the above discussion as well as the decisions of Hon'ble Punjab & Haryana High Court and Hon'ble Delhi High Court, we do not find any error or illegality in the impugned order of CIT(A) qua this issue. 7. We further note that an identical issue was also decided by the Tribunal in the case of ACIT Vs. NGC Network Pvt. Ltd. in ITA no. 1382/Mum/2014 vide order dated 9-7-2014, wherein the Tribunal has taken the similar view. Accordingly, following the earlier orders of this Tribunal on this issue, we do not find any error or illegality in the order of CIT(A) qua this issue. 8. Ground No. 2 is regarding applicability of section 194J or section 194C in respect of dubbing charges. 9. We have heard the Ld. DR as well as Ld. AR and considered the relevant material on record. At the outset we note that an identical issue was considered and decided by this Tribunal in the case of ACIT Vs. Manish Dutt (12 taxmann.com 50), where ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction of programmes for such broadcasting or telecasting. The assessee furnished details of the work carried out by it from Studio 90 Degree which showed that in respect of TV serial Karma the assessee undertook dubbing work. The agreement between the assessee and Turner Entertainment a telecasting Company was also filed. 10. On consideration of the above submissions, the CIT(A) held as follows: "2.3.2 Facts and materials on record are considered. It is seen that Assessing Officer had only asked Appellant to explain the payment but had not specified any evidence to be furnished. The submissions made during the appeal indicate that the studio was hired for utilizing the dubbing facilities which included service through the studio staff. Condition of section 194C(7) Explanation (iv) are met also. As such the payment made was coverable under section 194C under which tax was deduced. On facts, therefore, the disallowance made under section 40(a)(ia) is deleted." 11. Aggrieved by the order of the CIT(A) the revenue has raised ground No.2 before the Tribunal. 12. We have heard the rival submissions. As can be seen from the order of the CIT(A), the assessee had utili ..... X X X X Extracts X X X X X X X X Extracts X X X X
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