9911796707
TMI Blog2021 (12) TMI 1369X X X X Extracts X X X X X X X X Extracts X X X X ..... 201(1) and 201(1A) of Income Tax Act, 1961 ('the Act'). Heard both the parties. Case files perused. 2. The assessee's identical former substantive grievance pleads that both the learned lower authorities have erred in law and on facts in taking recourse to section 201(1) and 201(1A) TDS recovery mechanism regarding the alleged commission paid to pre-paid mobile distributors in its telecom services. Learned counsel raised vehemently contended that there exists no principal to agent relation between the assessee and its distributors giving rise to commission element qua the pre-paid recharge coupons. Mr. Doshi rather sought to buttress the point that the assessee has sold its coupons to the distributor giving credit to them regarding l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... verification in the very terms. This identical first and foremost substantive grievance is partly accepted for statistical purposes. 4. Next comes the latter common issue of applicability of "royalty" for the purpose of TDS deduction on domestic auto-roaming charges paid to other telecom operators. The CIT(A)'s detailed discussion affirming the Assessing Officer's action treating the assessee in default for having not deducted TDS on the impugned alleged royalty payment reads as under : 5. Learned department representative vehemently contended during the course of hearing that the CIT(A) has rightly upheld applicability of the impugned royalty provision 9(1)(vi) of the Act. He invited our attention to the historical background of "spectr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t to use any industrial, commercial or scientific equipment but not including the amounts referred to in section 44BB; (v) the transfer of all or any rights (including the granting of a licence) in respect of any copyright, literary, artistic or scientific work including films or video tapes for use in connection with television or tapes for use in connection with radio broadcasting 32[***] ; or (vi) the rendering of any services in connection with the activities referred to in sub-clauses (i) to (iv), (iva) and (v)." There is no indication in the Assessing Officer's TDS recovery order or in the CIT(A)'s findings as to whether the assessee's impugned payments made to the spectrum holder(s); as the case may be, satisfies any of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9;s appeals are partly allowed in above terms. A copy of this common order be placed in the respective case files. 7. We lastly acknowledge that although the instant appeals are being decided after a period of 90 days from the date of hearing as per Rule 34(5) of the IT(AT) Rules 1963, the same however, does not apply in the covid lockdown situation as per hon'ble apex court's recent directions dated 27-04-2021 in M.A.No.665/2021 in SM(W)C No.3/2020 'In Re Cognizance for extension of limitation' making it clear that in such cases where the limitation period (including that prescribed for institution as well as termination) shall stand excluded from 14th of March, 2021 till further orders. Order pronounced in the open court ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
