2013 (11) TMI 309

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....the assessee has deducted TDS u/s 194 C in respect of payments which are in nature of fees for technical and profession services or rent on which TDS should have been deducted as per provisions of section 194 I or 194 H. AO was of the view that where specific provisions for deduction of tax at source are provided under section 194I, 194H, then the provisions of residuary section 194C would not apply. The AO observed that the assessee has deducted TDS @ 2.06% u/s 194 C on the payment made on Art Designing and Film Post Production whereas the TDS should have been deducted @5.61% u/s 194J of the Act as the services rendered by Prime Focus are in the nature of editing of films, hence these are in the nature of fees for professional/technical se....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ons of section 40(a)(ia) cannot be invoked as the amount was not payable at the end of the year as held by the Special Bench of the ITAT, Vizag in the case of Merilyn Shipping & Transports Vs Addl. CIT, Range-1[136 ITD 23(SB]). Further, on merits it was contended that the assessee has correctly deducted tax under section 194C and no proceedings under section 201 were initiated for any short deduction of tax. 4. The ld. DR however relied on the orders of the authorities. 5. We have considered the issue. Without going into the merits whether the provisions of section 194C will apply or 194I or 194J will apply, the issue can be decided under the provisions of section 40(a)(ia) which was invoked by the AO. The said provision is as under :....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....oval of Calcutta High Court in the case of CIT vs. M/s. S.K. Tekriwal (supra) relied on by the assessee. Therefore, we are of the opinion that disallowance under section 40(a)(ia) does not arise in this case. The other contentions raised by the ld. Counsel need not be adjudicated as provisions of section 40(a)(ia) can not be invoked in a case of shortfall of TDS. Moreover, the revenue has also not taken any steps u/s. 201 wherein the issue whether the deduction has to be made u/s. 194I or 194J or 194C can be considered/ examined. The ground 1 to 4 and additional ground raised are considered as allowed. 6. Ground No.5 pertain to disallowance of depreciation on paintings which were part of furniture and fixtures. The assessee is in the bus....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ue was considered and depreciation on paintings was allowed. It was held that :    FACTS    "The assessee-company was denied depreciation on paintings which, according to the assessee, constituted part of interior decoration and part of the furniture and fittings used in the course of business. The Assessing Officer was of the opinion that such paintings could not be taken to constitute items of furniture and fittings. On appeal, the Commissioner (Appeals), upheld the Assessing Officer's order.    HELD    From the dictionary meaning of the word 'furniture', it is clear that all articles of convenience or decoration used for the purpose of furnishing a place of business or an office are art....