INCOME TAX ACT, 1961

Section 194J

Tax deduction at source - Under section 194J - Carriage fees/channel Placement fees paid by assessee engaged in broadcasting television channels -

Issue arose as to whether any obligation was cast upon assessee carrying on business of broadcasting television channels to subject “carriage fees” paid to cable operators for deduction of tax at source under section 194J. Held: It was found that aforesaid issue in assessee's own case for assessment years 2011-12 and 2012-13, Tribunal had observed that “carriage fees” paid by assessee to cable operators did not fall within realm of the definition of “Royalty”, therefore, no obligation was cast upon assessee to deduct tax at source under section 194J. Apart therefrom, Tribunal also approved alternative view taken by CIT(A), that in case of shortfall due to any difference of opinion as to taxability of any item or the nature of payment falling under the various TDS provisions, no disallowance could be made by invoking provisions of section 40(a)(ia). Also High Court of Bombay in CIT v. UTV Entertainment Television Ltd. 2017 TaxPub(DT) 4885 (Bom-HC), had observed that in case of an assessee carrying on the business of broadcasting television channels, the payments made towards placement charges would fall within the meaning of “work” covered in Clause (iv) of Explanation to section 194C.

Followed:CIT v. UTV Entertainment Television Ltd. (2017) 399 ITR 443 (Bom) : 2017 TaxPub(DT) 4885 (Bom-HC) Referred: CIT & Anr. v. Kishore Rao & Ors. (Huf) (2016) 387 ITR 0196 (Karn) : 2016 TaxPub(DT) 1952 (Karn-HC) CIT v. PVS Memorial Hospital Ltd. (2016) 380 ITR 284 (Ker) : (2015) 60 taxmann.com 69 (Ker) : 2015 TaxPub(DT) 3001 (Ker-HC) CIT v. Prayas Engineering Ltd. [Tax Appeal No. 1237 of 2014, dt. 17-11-2014] CIT v. SK. Tekriwal (2013) 48 SOT 515 (Cal) : 2013 TaxPub(DT) 0240 (Cal-HC) ACIT v. T.V. Vision Ltd. [ITA No. 3386/Mum/2016, dt. 28-2-2018 for A.Y. 2011-12] Astt. CIT v. Star Den Media Services Pvt. Ltd. [Cross Objection No.71/Mum/2014, 72/Mum/2014 Arising Out of ITA No.1413/Mum/2014, 1414/Mum/2014, dt. 5-8-2015] DCIT (TDS) v. Zee Entertainment Enterprises Ltd. [ITA No. 3931 to 3935/Mum/2013] : 2015 TaxPub(DT) 1216 (Mum-Trib) Viacom 18 Media Pvt. Ltd. v. Asstt. DIT (2014) 162 TTJ 0336 (Mum) : 2014 TaxPub(DT) 1752 (Mum-Trib) Dy. CIT v. Chandabhoy & Jassobhoy (2011) 49 SOT 448 (Mum-ITAT) : 2011 TaxPub(DT) 2185 (Mum-Trib)

REFERRED :

FAVOUR : In assessee's favour

A.Y. :

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