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TMI Blog2021 (8) TMI 219X X X X Extracts X X X X X X X X Extracts X X X X ..... business of construction. Assessee had a lease agreement with Noida Authority executed on 04/06/2010 whereby the assessee is a lessee and paid lease rent to the tune of Rs. 81,56,567/- to the Noida Authority. Assessee did not deduct TDS on such payment made for annual lease rent on the basis of letter given by the Noida Authority. So also during the year, assessee made certain payments in respect of advertisement expenses to the tune of Rs. 9,47,429/- and the assessee deducted TDS at 2% u/s. 194C of the Income-tax Act, 1961 ("the Act"). 3. Assessee was issued notice u/s. 201(1)/201(1A) of the Act and was asked to submit the details of TDS deducted in respect of both these payments. 4. In so far as the lease rent is concerned, assessee su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot to be treated as assessee in default, it does not absolve the assessee from interest liability u/s. 201(1A) of the Act and directed the learned Assessing Officer to re-compute the interest upto the date of filing the return of the deductee. Learned CIT(A), however, confirmed the action of the Assessing Officer in raising the demand for Rs. 14,55,642/- u/s. 201(1) and 201(1A) of the Act in respect of advertisement expenses for not deducting TDS at 10% u/s. 194J of the Act. Aggrieved by this action of the ld. CIT(A), assessee preferred this appeal. 8. In so far as the lease rent payment is concerned, facts are not in dispute. By placing reliance on the decision of Hon'ble jurisdictional High Court in the case of Rajesh Projects (India) Lt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... favour of the assessee. Learned DR places reliance on the findings of the authorities below. 10. In Prateek Buildtech (supra), a coordinate Bench of this Tribunal held that when once the basic liability of reimbursement by Gnoida is made, the authority shall not pursue any coercive method. Same is the finding in M/s. Skytech Construction (supra). Facts involved in these two cases are similar to the facts involved in the case on hand. Since the issue is covered by the view taken by coordinate Benches in two matters, while respectfully following the same, we restore the issue to the learned Assessing Officer with the direction to verify whether the NOIDA has payments of the basic TDS liability along with the interest; that the assessee shal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cy or interior decoration or advertising or such activity as is notified by the Board for the purpose of section 44AA or section 194J. This circular makes it clear that the tax will be deducted at source u/s. 194J from the payments made for professional services, when advertising agency makes payment for professional services to a film artist such as an actor, a cameraman, a director etc., in which case the tax will be deducted at 5%. 13. Further Circular No. 4 clarifies the distinction between the payments by a person to the advertising agency and the payments made by advertising agency to the television channel or newspaper company etc. A reading of Circular No. 714 and 4 makes it amply clear that when a person makes a payment to adverti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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