The Tax Publishers2020 TaxPub(DT) 1339 (SC) : (2020) 269 TAXMAN 0464

INCOME TAX ACT, 1961

Section 261 Section 194C

Where the department preferred SLP to appeal against the judgment of Bombay High Court in Disney Broadcasting (India) Ltd.'s case, whereby the High Court held that sub-clause (b) of clause (iv) of the Explanation to section 194C covers the work of broadcasting and telecasting including production of programmes for such broadcasting or telecasting, that when services are rendered as per the contract by accepting placement fee or carriage fee the same are similar to the services rendered against the payment of standard fee paid for broadcasting of channels on any frequency thus, by no stretch of imagination these could be termed as professional fees and these are performed under a contract, therefore, section 194C was rightly applied, the Supreme Court dismissed the SLP as withdrawn, leaving question of law open.

Appeal (Supreme Court) - Special leave petition - Tax deduction at source - Under section 194C or 194J--Carriage fees and sub-titling charges paid by assessee engaged in broadcasting

Department preferred SLP to appeal against the judgment of Bombay High Court in Disney Broadcasting (India) Ltd.'s case, whereby the High Court held that sub-clause (b) of clause (iv) of the Explanation to section 194C covers the work of broadcasting and telecasting, including production of programmes for such broadcasting or telecasting, that when services are rendered as per the contract by accepting placement fee or carriage fee the same are similar to the services rendered against the payment of standard fee paid for broadcasting of channels on any frequency thus, by no stretch of imagination these could be termed as professional fees and these are performed under a contract, therefore, section 194C was rightly applied.Held: Counsel for the petitioner, on instructions, issued by the Department of Revenue, Ministry of Finance vide F. No. 390/Misc./116/2017-JC, dated 22-8-2019, sought permission was to withdraw this Special Leave Petition along with pending applications therein due to low tax effect. Permission granted, subject to just exceptions. The special leave petition and pending applications were dismissed as withdrawn, leaving question of law open.

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