TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Join Channel
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: Whether carriage fees or channel placement fees paid to cable operators and MSO/DTH operators were liable for deduction of tax at source under section 194C of the Income-tax Act, 1961, or under section 194J, and whether disallowance under section 40(a)(ia) could be made on the alleged short deduction.
Analysis: The payments were found to be made for placing channels on preferred frequency bands as part of the broadcasting and telecasting arrangement, and not for technical service or royalty. The Court followed its earlier decisions in the assessee's own case and other binding jurisdictional decisions holding that such payments fall within the inclusive definition of "work" under section 194C. It was also held that the Revenue's reliance on section 9(1)(vi) and the explanations thereto did not alter the settled position, and that the settled jurisdictional law required deduction under section 194C rather than section 194J.
Conclusion: The payment was deductible under section 194C, not under section 194J, and the disallowance under section 40(a)(ia) was not sustainable. The issue was decided in favour of the assessee.
Ratio Decidendi: Payments made for carriage or channel placement in the course of broadcasting and telecasting are covered by section 194C as "work", and the more specific TDS provision prevails over the general provision under section 194J.
TaxTMI 
