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TMI Blog2020 (7) TMI 457X X X X Extracts X X X X X X X X Extracts X X X X ..... t made out a case, to establish that the payment was either in the nature of contract payment or in the nature of rental payment. In the instant case, the payment was made by the theatre owner who is exhibiting the films, therefore, it cannot be held as rental payment. In the case of rent, the assessee ought to have received the payment, but in the instant case, the assessee is making the payment to film distributor. Assessee is screening the films being the theatre owner, it cannot be held that the same is contract payment. Therefore, we are of the view that the AO has not made out the case of either contractual payment or rental payment for holding that it attracts the TDS. Department also did not make out a case of assessee in defa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l payment or the contract payment, thus the provisions of deduction of tax at source is applicable on both the events. 3. Against which the assessee filed appeal before the CIT(A) and the Ld.CIT(A) confirmed the addition made by the AO. 4. Against the order of the Ld.CIT(A) the assessee is in appeal before us. During the appeal hearing, the Ld.AR argued that the assessee is in the activity of exhibiting films and it has made the payment to the film distributors. The revenue is shared between the film distributor as well as the theatre owner, therefore, the same cannot be treated as contractual payment and consequently TDS provisions are not applicable. The Ld.AR further argued that the payment was neither contractual payment nor is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reliance on earlier assessments and subsequent assessments made by the AO. In the earlier assessments, on identical facts, the Ld.CIT(A) deleted the addition and it appeared that the department has not filed the appeal. In the subsequent year, though the assessment was made on identical facts, no such addition was made by the AO. The AO did not dispute that the payment is the sharing of revenue between the theatre owner and the assessee. The AO also has not made out a case, to establish that the payment was either in the nature of contract payment or in the nature of rental payment. In the instant case, the payment was made by the theatre owner who is exhibiting the films, therefore, it cannot be held as rental payment. In the case of rent ..... X X X X Extracts X X X X X X X X Extracts X X X X
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