TaxTMI 
TaxTMI 
2015 (9) TMI 945
X X X X Extracts X X X X
X X X X Extracts X X X X
.... in both the years, these appeals were heard together and disposed of by this common order for the sake of convenience. 2. In the appeals filed by the Revenue, the sole issue is whether the ld. CIT(A) was justified in deleting the interest levied u/s.201(1A) of the Act on the issue of payments made by the assessee for the purpose of display of advertisement of the assessee's clients and whether the ld. CIT(A) was correct in holding that the provisions of section 194C would apply and not the provisions of section 194J, though quantum of interest may defer in both the appeals. 3. During the course of scrutiny assessment proceedings for the years under consideration, the Assessing Officer (A.O.) noticed that the assessee has shown expenditur....
X X X X Extracts X X X X
X X X X Extracts X X X X
....'5.9 The Appellant had booked hoarding sites through hoarding contractors on behalf of its clients for display of their advertisements. The Appellant neither puts up a hoarding nor does it take any space on rent from the hoarding contractors. It only obtains the right of displaying the advertisement on hoardings put up by the hoarding contractors. In other words, the Appellant had subcontracted the work for putting up the hoardings to hoarding contractors. The prime responsibility of payment of rent of the sites is of the hoarding contractor and not of the Appellant who acts as the main contractor. The subcontractor (hoarding contractor), in turn hires the sites and is responsible to put up the hoarding. Accordingly the provisions of the se....
X X X X Extracts X X X X
X X X X Extracts X X X X
....it was incumbent upon the contractee to display the advertisement material properly on the display board/hoardings. The ld. Counsel continued saying that any discrepancy in the display would result into non-payment to the contractee. Therefore, the assessee has correctly deducted the tax at source as per the provisions of section 194C of the Act. 5. We have considered the rival submissions and have carefully perused the orders of the authorities below. It is an undisputed fact that none of the hoarding sites are owned by the assessee nor taken on rent. The assessee has only the limited right to display its clients advertisement on that hoarding for a particular period of time. It would not be out of place to consider the following extract ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....er parties for display of advertisement of its client and the transaction is purely in the nature of contract for the work of advertising as defined in clause VA of Explanation to section 194C of the Act. We decline to interfere with the findings of the ld. CIT(A) and the appeals filed by the Revenue are accordingly dismissed. 8. In its cross objections, the only surviving ground relates to the issue whether the consultancy charges paid by the assessee are in the nature of salaries u/s.192 of the Act or whether it is in the nature of fees or professional service attracting the provisions of section 194J of the Act. During the course of assessment proceedings, the A.O. observed that the assessee has paid professional charges to the retainer....