TaxTMI 
TaxTMI 
2012 (8) TMI 16
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.... AUDA vide its order dated 8-4-2005 accepted the tender of the assessee for the first year charges of Rs.86,11,117/-.The Revenue, relying on the CBDT circular No.715 dated 8-8-1995 and more particularly to the reply to question No.5 of the aforesaid circular, held that the assessee was required to deduct TDS u/s.194-I while making the payment to AUDA. Since the assessee had not deducted TDS, the Assessing Officer vide order dated 9-2-2007 raised demand of Rs.19,09,894/- u/s. 201(1) and interest of Rs.3,67,336/.- u/s. 201(1A).Aggrieved by the order of the Assessing Officer, the assessee preferred appeal before CIT (A). CIT (A) vide his order dated 6-11-2007, upheld the order of the Assessing Officer by holding as under:- "7. It is a fact th....
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....iven by license structural engineer and the size of the hoardings should not exceed 1080 sq. mt. for entire 60 hoardings. For applying Section 194-I the assessee should pay rent for the use of any land or building which has been defined under Explanation appended thereto but in the present case, the assessee has not paid any rent for use of land or any building and in fact AUDA has not provided any such thing to the assessee and even the hoardings were to be erected above the ground level. We find that provisions of Section 194C are applicable because AUDA has entered into an advertisement agreement with the assessee to display advertisements and that rights are allowed to the assessee. There is order for displaying advertisement by AUDA wi....
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.... 5. Before us, the Ld. A.R. submitted that the Assessing Officer vide para 17 on page 7 of the order the had worked out the liability presuming that the payment liability of Rs.85,11,116/- is evenly distributed over the year and the interest u/s. 201(1) was therefore calculated from the middle of the year. The A.O. thus worked out the liability of tax of Rs.19,09,894/- u/s. 201(1) and interest of Rs.3,67,336/- u/s. 201(1A) and accordingly the aggregate liability was worked out at Rs.22,77,230/-. The Ld. A.R. submitted that AUDA is subject to tax and is filing its return of income. The Ld. A.R. therefore contended that the quantum will have to be reworked in view of the decision of Hindustan Coca Cola Beverages (P) Ltd. vs. CIT 293 ITR 226 ....