INCOME TAX ACT, 1961

Section 194C read with Section 194J

Tax deduction at source under section 194C or 194J - Placement fees / carriage fees paid to cable operators / MSO/DTH Operators - Validity -

Revenue raised a substantial question of law whether Tribunal was justified in holding that the placement fees/carriage fees paid to Cable Operators/MSO/DTH Operators are payments for work contract covered under section 194C, and not fees for technical services under section 194J. Held: Placement fees were paid under the contract between assessee and the cable operators. Therefore, by no stretch of imagination, considering the nature of transaction, the argument of assessee that carriage fees or placement fees were in the nature of commission or royalty can be accepted. Placement fees/carriage fees paid to cable operators/MSO/DTH operators are payments for work contract covered under section 194C, and not under section 194J. No substantial question of law arose.

Followed:CIT v. M/s. Zee Entertainment Enterprises Ltd. [Income Tax Appeal Nos. 1117 of 2015, 1107 of 2015, 1174 of 2015 & 126 of 2016, decided on 28-2-2018 : 2018 TaxPub(DT) 1288 (Bom-HC)]

REFERRED :

FAVOUR : In assessee's favour

A.Y. :

INCOME TAX ACT, 1961

Section 194C read with Section 194J

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