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TMI Blog2020 (2) TMI 152X X X X Extracts X X X X X X X X Extracts X X X X ..... .CIT(A) after considering relevant facts has rightly deleted additions made by the Ld. AO towards non levy of TDS u/s 194H of the I.T.Act, 1961 and hence, we are inclined to uphold the findings of the Ld.CIT(A) and reject ground taken by the revenue. - ITA No.7403/Mum/2018 - - - Dated:- 29-1-2020 - Shri Saktijit Dey, Judicial Member And Shri G. Manjunatha, Accountant Member For the Assessee : Shri Shailesh S.Shah, AR For the Revenue : Shri Abhijit Patankar, CIT-DR ORDER PER G.MANJUNATHA (A.M): This appeal filed by the revenue is directed against, the order of the Ld. Commissioner of Income Tax (Appeals) 60, Mumbai, dated 31/10/2018 and it pertains to Assessment Year 2012-13.. 2. The revenue has raised the following grounds of appeal:- (i) Whether, on the facts and in the circumstances of the case and in law the Ld.CIT(A) is justified in deleting the addition made u/s 194H, without appreciating the fact that the relationship between the assessee company and its distributors was in the nature of principle agent relationship and hence the payment made by the company to its distributors in the form of discount falls within the meani ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fter 3. The brief facts of the case are that the assesse company is engaged in the business of providing Direct to Home (DTH) services in the name of Videocon d2h, for which the license is given by Ministry of Information Broadcasting, Government of India. The assessee has entered into agreements with various distributors for distribution/sale of Set-top Boxes (STB) , prepaid vouchers, recharge vouchers, top-up vouchers etc. The assesse has also entered into agreements with various service providers at various locations for carrying out the work of installations of STB and dish antenna. As per the terms of agreement between the parties, the distributors/dealers are allowed discounts on sale of STB and recharge voucher from their maximum Retail Price (MRP). The distributor/dealer can sell these items to the customers at a price not exceeding the MRP. As regards, the installation charges paid for installation of STB and dish antenna, the assessee has paid service charges to service providers and has deducted tax at source u/s 194C of the I.T.Act, 1961, whereas no tax has been deducted, in respect of discount offered on sale of STB and recharge vouchers to distributors/dealers ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d interest u/s 201(1) and 201(1A) of the Act, in respect of discount offered to distributors/dealers, on the ground that the arrangement between the parties is on principal to principal basis. Similarly, the Ld.CIT(A) has deleted additions made by the Ld. AO towards short deduction of TDS, in respect of payment made to service providers for installation of STB and dish antenna. Aggrieved by the Ld.CIT(A) order , the revenue is in appeal before us. 5. The first issue that came up for our consideration from ground NO. 1 to 3 of revenue appeal is applicability of provision of section 194H, in respect of discount offered to distributors/dealers for sale of STB and recharge coupons. The Ld. AR, for the assessee, at the time of hearing submitted that this issue is squarely covered in favour of the assessee by the decision of ITAT, Mumbai B bench in assesse own case in ITA No. 7200/Mum/2012 and 7201/Mum/2012 for AY 2010-11 and 2011-12, where the issue has been considered ,in light of the agreement between the parties and held that discount offered to distributors/dealers is on principal to principal basis, which does not fall under the provisions of section 194H of the Act. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in favour of the assesse by the decision of ITAT, Mumbai B bench in the case of M/s Videocon d2h Ltd vs DCIT in ITA No. 7200/Mum/2012 and 7201/Mum/2012 for AY 2010-11 and 2011-12, where it has been decided that services charges paid to service providers is in the nature of works contracts and hence, the assesee has rightly deducted TDS u/s 194C of the I.T.Act, 1961. 10. The Ld. DR fairly accepted that the issue is covered in favour of the assessee by the decision of ITAT, in assesse own case for earlier years, but he strongly supported order of the Ld. AO. 11. We have heard both the parties, perused the material available on record and gone though orders of the authorities below. We find that an identical issue has been considered by the co-ordinate bench of Mumbai, ITAT in assessee own case for AY 2010-11 and 2011- 12, where under identical set of facts, it has been held that service charges paid to service providers is in the nature of works contracts and hence, the assesee has rightly conducted TDS u/s 194C of the I.T.Act,1961 . The relevant findings of the Tribunal are as under:- 10. We have considered rival contentions and carefully gone through the orders o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s to 'works contract. The detailed finding so recorded by CIT(A) are as per material on record which has not been controverted by ld. DR by bringing any positive material. Accordingly, we do not find any reason to interfere in the order of CIT(A) holding that installation of Set-Top Box amounts to works contract and no ITA No.7047/Mum/2012 and other appeals M/s. Videocon d2h Limited technical expertise are required so as to make the assessee liable under the provisions of Section 194J of the IT Act. 12. In this view of the matter and consistent with view taken by the co-ordinate bench in assessee own case for earlier years, we are of the considered view that service charges paid to service providers for installation of STB and dish antenna is in the nature of works contract and accordingly, the assessee has rightly deducted TDS u/s 194 C of the I.T.Act, 1961. The Ld.CIT(A) after considering relevant facts has rightly deleted additions made by the Ld. AO towards short deduction of TDS on service charges u/s 201(1) and 201(1A) of the I.T.Act, 1961. Hence, we are inclined to uphold the order of the Ld.CIT(A) and reject ground taken by the revenue 13. In the resul ..... X X X X Extracts X X X X X X X X Extracts X X X X
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