TaxTMI 
TaxTMI 
2010 (1) TMI 832
X X X X Extracts X X X X
X X X X Extracts X X X X
....single consolidated order for the sake of convenience. 2. Briefly stated the facts of the case are that the assessee who was a partnership firm was engaged in the business of providing event management services to various clients and customers. Survey under section 133A had been conducted at the business premises of the assessee on 20-2-2004 during the course of which it was noticed that the assessee had not deducted tax at source under section 194C/ 194J in respect of certain payments. The Assessing Officer, therefore, treated the assessee in default under section 201(1) in respect of tax not deducted and charged consequential interest under section 201(1A) for assessment years 2000-01 to 2003-04. The details of tax and interest levied ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e to sub-contractors eligible for deduction under section 194C(2) and not under section 194C(1) or under section 194J. CIT(A) forwarded the submissions of the assessee to the Assessing Officer who reported that the claim of the assessee that it was covered under section 194C(2) was not supported by any proof. The assessee had not even filed copies of agreement with the clients to whom it provided services nor agreement with those from whom was availing services which was necessary to ascertain whether the assessee was a contractor or a sub-contractor. The Assessing Officer further reported that the assessee was an event manager and the nature of work was professional and not contractor. Even the auditors in the audit report under section 44....
X X X X Extracts X X X X
X X X X Extracts X X X X
....aken by the recipient or consideration which would be income of the recipient chargeable under the head 'Salaries'." 2.4 Therefore, CIT(A) further observed, that even if the assessee was not accepting itself as a professional it was definitely rendering managerial services. The assessee was in the business of event management and the name itself suggested that it was rendering management services. Therefore, CIT(A) did not accept the submission of the assessee that it was carrying on the business as a contractor. The assessee, for completion of event management task, engaged various agencies and the work given to them was certainly in the nature of contract and some of which was professional in nature. Thus, the nature of payments made b....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ans services rendered by a person in the course of carrying on legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration, or advertising or such other profession as is notified by the Board for the purposes of section 44A or of the section." 3.1 The learned AR further pointed out that the Board by Notification No. 50/17E, dated 12-1 -1997 had thereafter notified only (i) the profession of authorised representative, (ii) the profession of 'film artist' as other professional services. The phrase "film artist" in the said Notification had been further defined to mean any person engaged in his professional capacity in the production of cinematographic film whether....
X X X X Extracts X X X X
X X X X Extracts X X X X
....deducted tax at source. The dispute is only whether the case of the assessee will be covered under section 194C(1) which relates to payment made by the assessee to a contractor or under section 194C(2) which relates to payments made to a sub-contractor. In respect of art work and photography the Assessing Officer had treated the payment made by the assessee to the parties under section 194J which relates to payment for professional and technical services. There are different rates of tax prescribed under sections 194C(1), 194C(2) and 194J. The case of the assessee is that it is covered under the provisions of section 194(2) as it had sub-contracted the work to other parties. The case of department is that the assessee as an event manager wa....
X X X X Extracts X X X X
X X X X Extracts X X X X
....sing Officer. 4.1 The only other dispute is whether in respect of art work and photography the parties to whom payments had been made by the assessee should be treated as a professional or as a contractor. The department has treated the art work and photography work as a professional. The professional service has been defined in clause (a) to the Explanation to section 194J which had been reproduced in para 3 earlier. None of the services mentioned in clause (a) is relevant to the services of the assessee and only other services which have been notified by the Board and not appearing in the clause are the profession of authorized representative and the profession of film artist. Again the profession of authorized representative is not ap....