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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 ..... As decided in case of Rajesh Projects (supra) to the effect that GNoida was ensured that the reimbursement is made to compensate the petitioner s excess payments; the income tax authorities shall not pursue any coercive methods for recovery of the amounts, penalty, once the basic liability (with interest to be paid by GNoida) is satisfied and decided the issue in favour of the assessee. In Prateek Buildtech [ 2020 (3) TMI 224 - ITAT DELHI] 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. We restore the issue to the learned Assessing Officer with the direction to verify whether the NOIDA has payments of the basic TDS li ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re. A contract need not always be in writing and could be implied also. In the circumstances, we find that the payment made by the assessee for advertisement in connection with their business falls within the ambit of section 194C and not section 194J - ITA No. 1034/Del/2018 - - - Dated:- 5-8-2021 - Shri R.K. Panda, Accountant Member And Shri K. Narasimha Chary, Judicial Member For the Appellant : Sh. Ved Jain, Advocate For the Respondent : Sh. Farhat Khan, Sr. DR ORDER PER K. NARASIMHA CHARY, J.M. Aggrieved by the order dated 20/03/20178 passed by the Commissioner of Income Tax (Appeals)-41, New Delhi ( Ld. CIT(A) ) in the case of Perfect Probuild Pvt. Ltd. ( the assessee ), for the assessment year 2011-12, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 201(1A) of the Act. 6. Similarly, in respect of advertisement expense, learned Assessing Officer was of the opinion that the TDS was to be deducted at 10% u/s. 194J, but not at 2% u/s. 194C, inasmuch as there was no contract for providing advertisement services. On that account, he raised a demand of ₹ 9,47,429/- u/s. 201(1) and interest at ₹ 5,08,213/- u/s. 201(1A) of the Act, put together at ₹ 14,55,642/- for short deduction of TDS on payment of advertisement expenses. 7. When the assessee preferred appeal, learned CIT(A) gave relief to the assessee in part by directing the deletion of the demand on account of non-deduction of tax basing on the decision of Hon ble Jurisdictional High Court in the case of Rajesh P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1A) and the finding of the authority below that even if the assessee is not to be treated as an assessee in default, it does not absolve the assessee from interest liability u/s. 201(1A) of the Act. 9. Learned AR places reliance on the decision in the case of Prateek Buildtech (India) Pvt. Ltd. v. ACIT, 2020(3) TMI 224-ITAT Delhi and M/s. Skytech Construction Pvt. Ltd. vs. ITO(TDS)- 2019 (12) TMI 601-ITAT Delhi and submitted that the issue is no longer res integra and in the above two decisions, the Tribunal noticed the directions of Hon ble jurisdictional High court in the case of Rajesh Projects (supra) to the effect that GNoida was ensured that the reimbursement is made to compensate the petitioner s excess payments; the income tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... adcasting and telecasting shall deduct an amount equivalent to 1% where the payment is being made to an individual and at 2% in other cases. Learned Assessing Officer was of the view that the provisions of section 194J are applicable because there is no contract between the assessee and the advertising agency in this case and therefore, such payments have to be treated as payments by way of fee for professional services. 12. It could be seen that the word advertising has been clarified by CBDT in Circular No. 714 dated 03/08/1995 while stating that according to the amended provisions, tax has to be deducted @ 1% in case of advertising and at 2% in other cases. It is further stated in Circular No. 714 that fee for professional or techni ..... X X X X Extracts X X X X X X X X Extracts X X X X
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