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TMI Blog2021 (11) TMI 34X X X X Extracts X X X X X X X X Extracts X X X X ..... When placement fee is received, a channel is placed on a particular prime band. It was found that by an agreement to place the channel on a prime band by accepting placement fee, the cable operator/ MSO does not render any technical service. As far as Appellate Tribunal is concerned, again the definition of work in clause (iv) of the explanation to Section 194C was looked into. We must note here that a grievance was made by the learned counsel appearing for the appellant that there are no detailed findings recorded by the Appellate Tribunal. Commissioner (Appeals) has recorded detailed findings on the basis of material on record and by referring to the findings, the Appellate Tribunal has expressed general agreement with the findings rec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... various countries, including over Indian sub continent A show cause notice was issued under Section 201(1)/201(1A) of the Act to the Appellant to show cause why the taxes should not be deducted tax at source on the channel placement charges under the provisions of Section 194J of the Apt, as cable operators are providing technical services to the Appellant. The TDS officer thereafter passed order under section 201(1)7 201(1 A) of. the Act holding that payments made towards placement of channels ought to be subject to TD under section 194J of the Act @ 10%. Accordingly, he computed short deduction of tax under section 201(1) of the Act amounting to ₹ 12,37,17,957 and interest under Section 20i(1A) of the Act amounting to ₹ 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 194J of the Act does; not hold ground. On the said issue, the appellant's AR relied on the decision of Hon ble Bombay High Court vide order bearing ITA No. 1420/1422 of 2016 which has upheld the decision passed by the Hon'ble ITAT in assessee's own case for AY 2008-09 and AY 2009-10 wherein it was concurred that channel placement fees are subject to withholding under section 194C of the Act and not under section 194 J of the Act. In addition to the above reliance was placed on the decision of Hon'ble Bombay High Court in case of NGC (India) Private Limited ('NGC India') wherein vide ITA No. 397 of 2015 it was held it payment was not subject to tax under section 194J of the Act. In furtherance to above, a sim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act is also hereby deleted. 6. Against the above order revenue is in appeal before us. 7. We have heard both the parties and perused the records. Ld. Counsel of the assessee submitted that issue is squarely covered in favour of the assessee by the decision of Hon ble Bombay High Court in assessee s own case and several decisions are as under:- 1. the decision of the Hon'ble High Court in the case of Star India Private Limited (ITA no 1420 of 2016 and 1422 of 2016) 2. The decision of the Hon'ble ITAT in the case of Star India Private Limited (ITA no 699 700/ Mum/ 2012 and CO No 21 22/Mum/2012) 3. The decision of the Hon'ble ITAT in the case of Star Den Media Services Pvt Ltd. (ITA No. 1311/Mum/2016) 4. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... perators / MSO/DTH Operators are payments for work contract covered u/s 194C and not fees for technical service u/s 194J, without appreciating that the services received by assessee are technical in nature? 2. The brief controversy between the appellant Revenue and the respondent assessee is with respect to the correct provision under which the payments made by the assessee for the purpose of channel placement should be made. The Revenue held that the deduction of tax at source should have been done in terms of Section 194J of the Act,whereas the assessee contended that the deduction was correctly made in terms of Section 194C of the Act 3. Upon perusal of the impugned order of the Tribunal, we notice that Tribunal while dismissing th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 194J would apply. In substance, the argument is that placement charges are basically for rendering technical service. The Commissioner (Appeals) has recorded a finding of fact on the basis of material on record that the placement charges are consideration for placing the channels on agreed frequency bands. It was found that, as a matter of fact, by agreeing to place the channel on any preferred band, the cable operator does not render any technical service to the distributor/ TV channel. Reference is made to the standard fee paid for basic broadcasting of a channel at any frequency. The Commissioner (Appeals) has considered clause (iv) of the explanation to Section 194C which incorporates inclusive definition of work . Clause (iv) includes ..... X X X X Extracts X X X X X X X X Extracts X X X X
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