| The Tax Publishers2020 TaxPub(DT) 0503 (Bom-HC) : (2020) 269 TAXMAN 0066 INCOME TAX ACT, 1961
Section 194C Section 194J
Placement fees/carriages fees paid to cable operators were payments for work contract covered under section 194C, and not under section 194J.
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Tax deduction at source - Under section 194C or 194J - Placement fees/carriage fees paid to cable operators -
Revenue raised a substantial question of law as to whether Tribunal was justified in holding that the placement fees/carriage fees paid to Cable 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/carriages fees paid to cable operators are payments for work contract covered under section 194C, and not under section 194J. Thus, appeal of Revenue was dismissed.
REFERRED : Pr. CIT v. Star Den Media Services Pvt. Ltd. [IT Appeal No. 1237 of 2016, dated 4-1-2019], CIT v. NGC Networks (India) Pvt. Ltd. [ITA No. 397 of 2015, dated 29-1-2018] : 2018 TaxPub(DT) 1047 (Bom-HC), CIT v. PVS Memorial Hospital Ltd. (2015) 60 Taxmann.com 69 (Ker-HC) : 2015 TaxPub(DT) 3001 (Ker-HC), CIT-11 v. N.G.C. Network (India) Pvt. Ltd. (2014) 368 ITR 0738 (Bom) : 2014 TaxPub(DT) 4019 (Bom-HC), CIT v. Star India P. Ltd. [IT Appeal No. 165 of 2009, dated 24-3-2009] NGC Networks (I) Pvt. Ltd. v. Asstt. CIT [ITA No. 1525 (Mum) of 2015, dated on 12-1-2016].
FAVOUR : In assessee's favour.
A.Y. :
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