9911796707
TMI Blog1994 (7) TMI 66X X X X Extracts X X X X X X X X Extracts X X X X ..... J. -- This writ petition has been filed by the Advertising Agency Association of India, an association of advertising agencies from all over India and its President, Diwn Arun Nanda. The petitioners have challenged Circular No. 681 dated March 8, 1994, of the Central Board of Direct Taxes in so far as it purports to make the provisions of section 194C of the Income-tax Act, 1961, applicable to pay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... petitioners. We had occasion to deal with the scope and ambit of section 194C of the Act in regard to fees paid to professionals like solicitors, advocates, chartered accountants, etc., in Writ Petition No. 1052 of 1994--Chamber of Income-tax Consultants v. CBDT [1994] 209 ITR 660, filed by the Chamber of Income-tax Consultants and others. We have delivered judgment in the above case on July 14, 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 194C does not apply to payments by way of professional fees. In the petition filed by the Bombay Goods Transport Association by our judgment dated July 28 and 29, 1994, we have held that the provisions of section 194C do not apply to contracts for mere carriage of goods, i.e., transport contracts. The ratio of the above two decisions squarely applies to the case of payments made to advert ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessees including the petitioners. It is only recently on March 8, 1994, that the Central Board of Direct Taxes by Circular No. 681 withdrew its earlier circulars on the point purportedly on the basis of the decision of the Supreme Court in Associated Cement Co.'s case [1993] 201 ITR 435. We have discussed the decision of the Supreme Court in Associated Cement Co.'s case [1993] 201 ITR 435, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oard of Direct Taxes on section 194C of the Act to include not only works contracts but also labour contracts. Following the ratio of the above two decisions of this court, we hold that the impugned circular of the Central Board of Direct Taxes, dated March 8, 1994, is illegal and without jurisdiction in so far as it requires deduction at source from payments made to advertising agencies for prof ..... X X X X Extracts X X X X X X X X Extracts X X X X
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