2015 (4) TMI 719

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... are common and all the four appeals belong to the same assessee, these appeals are clubbed and heard together and are being disposed of by this common order for the sake of convenience. 2. The common grounds of appeal raised by the assessee in all the four appeals are as under :           1. The learned Commissioner of Income-tax (Appeals) erred in holding that tax is to be deducted from the payments made towards advertisements.          2. The learned Commissioner of Income-tax (Appeals) erred in confirming the order of the Assessing Officer in demanding tax and interest under section 201(1) and 201(1A) of the Income-tax Act in respect of the pay....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....14,960 0 3. Deccan Advt 10,000 14,400 91,000 66,000 4. Siyasath 16,476 0 62,640 20,000 5. Amoda Publication 23,100 0 0 78,878 6. Telugu Frontline 25,000 0 0 0 7. Mahaboomi 0 3000 18,000 0 8. Munisif 0 38,800 26,000 0 9. Mahabubnagar Times 0 6,000 0 0 10. Rehaman Deccan 0 10,580 0 0 11. Vartha 0 4,000 31,500 29,570 12. Sahara India 0 0 5,000 0 13. Rastriya Sahara 0 0 21,000 0 14. Baldia Samachar 0 0 40,000 0 15. Aziz Publication 0 0 35,760 0 16. Mosin Publication 0 0 0 1,25,000 17. SPR....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... is required to be made at the rate of 1 per cent. It was further clarified that when an advertising agency makes payments to their models, artistes, photographers, etc., the tax shall be deducted at the rate of 5 per cent. as applicable to fees for professional and technical services under section 194J of the Act." 7. In view of the above circular, the Commissioner of Income-tax (Appeals) directed the Assessing Officer to compute the TDS liability if the amount paid exceeds the threshold limit for that particular assessment year. Aggrieved the assessee is in appeal before us. 8. Learned counsel for the assessee Sri S. Rama Rao relied on the decision in the case of Hindustan Coca Cola Beverages P. Ltd. v. CIT [2007] 293 ITR 226 (SC) a....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....or has satisfied the officer-in-charge of TDS, that taxes due have been paid by the deductee-assessee. However, this will not alter the liability to charge interest under section 201(1A) of the Act till the date of payment of taxes by the deductee-assessee or the liability for penalty under section 271C of the Income-tax Act'." 13. Hence, we remit the matter to the Assessing Officer to verify as to whether the payee has declared the respective income and paid tax thereon and if so, the assessee shall not be held as "the assessee in default" for the purpose of invoking provisions of sections 201 and 201A. Further, from the details at para 6.3 produced at page 6 of the Commissioner of Income-tax (Appeals) order, we find from the paymen....