ACIT, CIR-2, TDS, KOLKATA, Kolkata v. M/s Media Worldwide Pvt. Ltd., Kolkata

ITA 502/KOL/2016 | 2011-2012
Pronouncement Date: 29-11-2017 | Result: Dismissed

Appeal Details

RSA Number 50223514 RSA 2016
Assessee PAN CALMO9342E
Bench Kolkata
Appeal Number ITA 502/KOL/2016
Duration Of Justice 1 year(s) 8 month(s) 7 day(s)
Appellant ACIT, CIR-2, TDS, KOLKATA, Kolkata
Respondent M/s Media Worldwide Pvt. Ltd., Kolkata
Appeal Type Income Tax Appeal
Pronouncement Date 29-11-2017
Appeal Filed By Department
Tags No record found
Order Result Dismissed
Bench Allotted A
Tribunal Order Date 29-11-2017
Assessment Year 2011-2012
Appeal Filed On 22-03-2016
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH : KOLKATA [BEFORE HONBLE SHRI M.BALAGANESH AM & SHRI S.S. VISWANETHRA RAVI JM] I.T.A NO. 502/KOL/201 6 ASSESSMENT YEAR : 2012-1 3 ACIT CIRCLE-2 TDS KOLKATA -VS- M/S ME DIA WORLDWIDE PVT. LTD. [TAN: CALMO 9342 E] (APPELLANT) (RESPONDENT) FOR THE APPELLANT : SHRI ARINDAM BHATT ACHARJEE ADDL. CIT FOR THE RESPONDENT : SHRI GIRISH SHARMA FCA DATE OF HEARING : 16.11.2017 DATE OF PRONOUNCEMENT : 29.11.2017 ORDER PER M.BALAGANESH AM 1. THIS APPEAL IS DIRECTED AGAINST THE ORDER PASSED BY THE LEARNED COMMISSIONER OF INCOME TAX(APPEALS)-24 KOLKATA [IN SHORT THE LD CIT(A)] IN APPEAL NO.1292/CIT(A)-24/KOL/2014-15 DATED 15.01.2016 FOR THE FINANCIAL YEAR 2011- 12 AGAINST THE ORDER PASSED BY THE LEARNED INCOME T AX OFFICER (TDS) WARD- 58(3) KOLKATA [IN SHORT THE LD AO] U/S 201(1)/201( 1A) OF THE INCOME TAX ACT 1961 (IN SHORT THE ACT) DATED 29.03.2014. 2. THE BRIEF FACTS OF THIS ISSUE IS THAT THE ASSESS EE IS A COMPANY ENGAGED IN THE BUSINESS OF MEDIA BROADCASTING. A SURVEY U/S 133A O F THE ACT WAS CARRIED OUT IN ITS BUSINESS PREMISES ON 20.06.2011. THE LD. AO TRE ATED THE ASSESSEE DEDUCTOR AS 2 ITA NO.502/KOL/2016 MEDIA WORLDWIDE PVT.LTD A.YR.2012-13 2 A DEFAULTER IN RESPECT OF PAYMENT BY WAY OF CHANNEL CARRIAGE FEES (RS. 15 47 46 375/-) UP-LINKING CHARGES AND BANDWIDTH C HARGES (RS. 3 21 15 389/-) AND AIRTIME CHARGES (RS.50 82 920/-). THE ASSESSEE DEDUCTED TAX AT SOURCE IN RESPECT OF AFORESAID PAYMENTS U/S 194C OF THE ACT @ 2% WHEREAS THE LD. AO HELD THAT THE SAME IS LIABLE TO BE DEDUCTED U/S 194 J OF THE ACT @10%. ACCORDINGLY THE LD. AO RAISED A DEMAND OF RS. 1 89 06 702/- AS PAYABLE BY THE ASSESSEE TOWARDS THE DIFFERENCE. THE LD. CIT(A) BY FOLLOWING THE DECISION TAKEN IN ASSESSEE OWN CASE FOR THE IMMEDIATELY PRECEDING TWO YEARS HELD THAT THE ASSESSEE IS LIABLE FOR DEDUCTION TAX AT SOURCE ONLY U/S 194C OF THE ACT AND NOT U/S 194J OF THE ACT. AGGRIEVED THE REVENUE IS IN APPEA L BEFORE US ON THE FOLLOWING GROUNDS: 1. THE LD. CIT(A) ERRED IN LAW AND FACTS BY HOLDING THAT THE PROVISIONS OF SECTION 194C ARE APPLICABLE IN THE CASE OF ASSESSEE /DEDUCTOR AND NOT SEC. 194J. 2. THE LD. CIT(A) ERRED IN LAW AND FACTS BY HOLDING THAT THE CHANNEL CARRIAGE FEE UP-LINKING CHARGES BANDWIDTH CHARGES AND AIRT IME CHARGES ARE NOT TECHNICAL SERVICES BUT ONLY CARRIAGE CHARGES. 3. THE LD. CIT(A) HAS ERRED IN LAW AND FACTS BY HOL DING THAT THE PAYMENTS OF THE ASSESSEE/DEDUCTOR ARE COVERED U/S 194C WHILE PROCES S INCLUDES TRANSMISSION BY SATELLITE (INCLUDING UP-LINKING AMPLIFICATION CON VERSION OF DOWN LINKING OF SIGNAL) CABLE OPTIC FIBRE ETC. IS ROYALTY AS PER E XPLANATION OF SECTION 9(1)(VI) OF THE INCOME TAX ACT 1961 AND THE PROVISIONS OF SECT ION 194J ARE NOT APPLICABLE. 4. THE LD. CIT(A) HAS ERRED BY NOT HOLDING THE ASSE SSEE/ DEDUCTOR IN DEFAULT U/S 201(1)/201(1A) AND FURTHER NOT HOLDING/DIRECTION IT TO PAY THE DIFFERENCE DUE TO SHORT DEDUCTION IN ACCORDANCE WITH THE NOTICE OF DEMAND U/S 156 OF THE I.T. ACT 1961. 4. WE HAVE HEARD THE RIVAL SUBMISSIONS. DURING THE COURSE OF HEARING THE LD. AR STATED THAT THIS ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE BY THE DECISION OF THIS TRIBUNAL IN ASSESSEES OWN CASE FOR THE ASSESSMENT YEAR 2011 -12 IN I.T.A. NO. 2057/KOL/2014 DATED 12.05.2017. IN THE SAID ORDER OF THIS TRIBUNA L IT WAS HELD AS UNDER: 3 ITA NO.502/KOL/2016 MEDIA WORLDWIDE PVT.LTD A.YR.2012-13 3 4. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES A ND ALSO PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. AS AGREED BY THE LD. REPRESENTATIVES OF BOTH THE SIDES THE ISSUE INVOLVED IN THIS APPEAL OF THE REV ENUE IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE BY THE DECISION OF THIS TRIB UNAL IN ASSESSEE'S OWN CASE FOR THE IMMEDIATELY PRECEDING YEAR I.E. AY 2010-11 REN DERED VIDE ITS ORDER DATED 29.08.2014 IN ITA NO. 1422/KOL/2012 WHEREBY THE OR DER PASSED BY THE LD. CIT(APPEALS) CANCELLING THE DEMAND RAISED BY THE AS SESSING OFFICER AGAINST THE ASSESSEE UNDER SECTION 201(1) / 201(1A) FOR THE ALLEGED SHORT DEDUCTION OF TAX AT SOURCE FROM THE SIMILAR PAYMENTS MADE BY THE ASSESS EE WAS UPHELD BY THE TRIBUNAL VIDE PARAGRAPH NO. 8 OF ITS ORDER WHICH R EADS AS UNDER:- '8. UPON CAREFUL CONSIDERATION OF THE SUBMISSIONS WE FIND THAT IDENTICAL ISSUE WAS CONSIDERED BY THE TRIBUNAL IN THE CASE OF M/S. SRIS TI TELEVISION (REFERRED TO SUPRA). WE FIND THAT THE TRIBUNAL HAS ADJUDICATED THE ISSUE AS UNDER- '8. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATERIAL AVAILABLE ON RECORD WE CAN GAINFULLY REFER TO THE PROVISIONS OF SECTIONS 194C AND 194J WHICH ARE REPRODUCED AS UNDER:- '194C-PAVMENTS TO CONTRACTORS: ANY PERSON RESPONSIB LE FOR PAYING ANY SUM TO ANY RESIDENT (HEREAFTER IN THIS SECTION REFERRED TO AS THE CONTRACTOR) FOR CARRYING OUT ANY WORK (INCLUDING SUPPLY OF LABOUR F OR CARRYING OUT ANY WORK) IN PURSUANCE OF A CONTRACT BETWEEN THE CONTRACTOR A ND A SPECIFIED PERSON SHALL AT THE TIME OF CREDIT OF SUCH SUM TO THE ACC OUNT OF THE CONTRACTOR OR AT THE TIME OF PAYMENT THEREOF IN CASH OR BY ISSUE OF A CHEQUE OR DRAFT OR BY ANY OTHER MODE WHICHEVER IS EARLIER DEDUCT AN AMOUNT EQUAL TO'. '194J-FEES FOR PROFESSIONAL OR TECHNICAL SERVICES: (1) ANY PERSON NOT BEING AN INDIVIDUAL OR A HINDU UNDIVIDED FAMILY WHO IS RESPONSIBLE FOR PAYING RES IDENT ANY SUM BY WAY OF - (A) FEES FOR PROFESSIONAL SERVICES OR (B) FEES FOR TECHNICAL SERVICES (C) ROYALTY OR (D) ANY SUM REFERRED TO IN CLAUSE (VA) OF SECTION 28 SHALL AT THE TIME OF CREDIT OF SUCH SUM TO THE ACC OUNT OF THE PAYEE OR AT THE TIME OF PAYMENT THEREOF IN O R BY ISSUE OF A CHEQUE OR DRAFT OR BY ANY OTHER MODE WHICHEVER IS EARLIER DEDUCT AN AMOUNT EQUAL TO PER CENT OF SUCH SUM AS INCOME TAX ON INCOME COMPRISED THEREIN. WE FIND THAT THE ASSESSEE PRODUCED VARIOUS TYPES OF PROGRAMMES/SERIALS AND NEWS AND THESE WERE 4 ITA NO.502/KOL/2016 MEDIA WORLDWIDE PVT.LTD A.YR.2012-13 4 TELECASTED/BROADCASTED THROUGH MULTI SYSTEM OPERATORS FOR WHICH PAYMENTS WERE MADE TO THEM UNDER THE HEAD 'CARRIAGE CHARGES'. THE ASSESSEE HAS DULY DEDUCTED AND PAID TAX UNDER SECTION J94C OF TH E ACT. WE AGREE WITH THE ID CIT(APPEALS) THAT NO TECHNICAL SERVICES WERE INVOLVED IN PAYMENT OF CARRIAGE CHARGES MADE BY THE ASSESSEE FOR BROADCASTING OF THE PROGRAMMES PRODUCED BY THE ASSESSEE. THE ASSESSEE PRODUCED VARIOUS TYPES OF PROGRAMMES/SERIALS AND NEWS AND THESE WERE TELECASTED/BROADCASTED THROUGH MULTI SYSTEM OPERATORS. PAYMENTS IN THIS REGARD WERE MADE AS CARRIAGE CHARGES FOR WHICH PAYMENT OF TAX WAS DEDUCTIBLE UNDER SECTION 194C OF THE INCOME TAX ACT. AS PER DEFINITION OF TECHNICAL SERVICES GIVEN IN EXPLANATION TO SECTION 9 OF THE ACT THE DEDUCTEE SHOULD HAVE RENDERED MANAGERIAL TECHNICAL OR CONSULTANCY SERVICES. IN THIS CASE WE FIND THAT TH ERE IS NO SUCH FINDING OF THE ASSESSING OFFICER. THE DEDUCTEE HAS ONLY TELECASTED THE PROGRAMMES PRODUCED BY THE ASSESSEE. IN THIS CASE LAW REFERRED TO BY THE LD.CIT'(APPEALS) DECISION IN THE CASE OF DCIT - VS- NNM SECURITIES LIMITED ITAT HELD THAT IF THE ASSESSEE IS USING ANY FACILITY OF ANYONE THE SAME I S NOT TECHNICAL SERVICES. HON'BLE PUNJAB & HARYANA HIGH COURT IN THE CASE OF KARUKSHETRA DARPAN (P) LTD -VS- CIT [217 CTR 326J HAS HELD THAT TELECASTING ON THE PROGRAMME WAS COVERED UNDER SECTION 194C OF THE ACT . 9. IN THE BACKGROUND OF THE ABOVE DISCUSSION AND FO LLOWING THE PRECEDENT AS ABOVE WE DO NOT FIND ANY REASON TO IN TERFERE WITH THE ORDER OF THE ID. CIT(APPEALS). ACCORDINGLY WE UPHO LD THE SAME'. SINCE THE FACTS IN THE CASE BEFORE US ARE IDENTICAL RESPECTFULLY FOLLOWING THE ABOVE PRECEDENT WE UPHOLD THE ORDER OF THE LD.CIT(A) ON THIS ISSUE. ACCORDINGLY THIS APPEAL O F THE REVENUE STANDS DISMISSED'. RESPECTFULLY FOLLOWING THE DECISION OF THE COORDINA TE BENCH OF THIS TRIBUNAL IN ASSESSEE'S OWN CASE FOR AY 2010-11 ON A SIMILAR ISS UE WE UPHOLD THE IMPUGNED ORDER OF THE LD. CIT(APPEALS) DELETING THE DEMAND R AISED BY THE ASSESSING 5 ITA NO.502/KOL/2016 MEDIA WORLDWIDE PVT.LTD A.YR.2012-13 5 OFFICER FOR THE ALLEGED SHORT DEDUCTION OF TAX AT S OURCE BY THE ASSESSEE FROM THE PAYMENTS MADE TOWARDS CHANNEL CARRIAGE FEES UP-LI NKING CHARGES AND BANDWIDTH CHARGES AND DISMISS THIS APPEAL OF THE RE VENUE. RESPECTFULLY FOLLOWING THE SAME WE HOLD THAT THE I SSUE IS COVERED IN FAVOUR OF THE ASSESSEE AND HENCE THE ASSESSEE IS LIABLE TO DE DUCT TAX AT SOURCE ONLY U/S 194C OF THE ACT IN RESPECT OF AFORESAID SUBJECT MENTIONE D PAYMENTS. ACCORDINGLY THE GROUNDS RAISED BY THE REVENUE ARE DISMISSED. 5. IN THE RESULT THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE COURT ON 29.11.2017 SD/- SD/- [S.S. VISWANETHRA RAVI] [ M.BALAGA NESH ] JUDICIAL MEMBER ACCOUNTANT MEM BER DATED : 29.11.2017 SB SR. PS COPY OF THE ORDER FORWARDED TO: 1. ACIT CIRCLE-2 TDS KOLKATA 10B MIDDLETON ROW 7 TH FLOOR KOLKATA-700071 2. M/S MEDIA WORLDWIDE PVT. LTD. 54/1 RAFI AHMED KIDWAI ROAD 6 TH FLOOR KOLKATA-16 3..C.I.T.- 4. C.I.T.- KOLKATA. 5. CIT(DR) KOLKATA BENCHES KOLKATA. TRUE COPY BY ORDER SENIOR PRIVAT E SECRETARY HEAD OF OFFICE/D.D.O. ITAT KOLKATA BENCHE S