TaxTMI 
TaxTMI 
2015 (10) TMI 1388
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....nt order passed u/s 143(3) r.w.s. 147 as erroneous and prejudicial to the interest of revenue to the extent of non disallowance of subscription charges of Rs. 87,92,136/- paid to the TV channels for non deduction of TDS under the provisions of section 40(a)(ia) of the Act. The learned CIT has failed to appreciate the fact that the appellant being an advertising agent was not under obligation to deduct TDS from payments to media as per the circular No.715 dated 08/08/1995 and hence this order of CIT, which is totally erroneous, prejudicial, and against the principles of Natural Justice deserves to be quashed. 2. Ld. CIT has grossly erred in holding the assessment order as erroneous and prejudicial to the interest of revenue ignoring the clea....
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....7,92,136/- as per Section 40(a)(ia). The directions given to the AO by learned Commissioner were as under:- "I have gone through the details. The Circular 715 relied upon is not applicable here because the assessee is not an advertisement agency making payment to the channel owner for an advertisement. Further the payments is a contractual payment because there is a contract between the assessee who is a cable network provider and the TV channel owner that the assessee will make payment for buying services to the channel. In sub-section (7)(iv) of Section 194C work has been defined as those including broadcasting and telecasting. In the present case the cable operator is providing services of broadcasting to the assessee." There is a ....
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....the nature of the agreements and supporting accounts, we deem it proper as well as justifiable to admit those evidences, so as to appreciate the nature of payment made by the assessee. Those copies of agreements were between the assessee and few TV networks, namely, Star India, Star Sports, Zee Network, TV today, etc. In support of filing of Additional Evidence, she has placed reliance on 302 ITR 173 (Gujarat). Further she has pleaded that in the light of a decision of B.A. Research India Ltd., ITAT 'C' Bench Ahmedabad (ITA No.1095/Ahd/2013, A.Y. 2008-09 order dated 19.07.2013 has restored the issue back to the file of learned CIT(A) to be decided afresh. In that case as well some annexure was not available which was essential to decide the....
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....roneous order passed by the AO; then the learned Commissioner has been granted revisional power either to correct the order or to pass requisite directions. It is incumbent on the AO to investigate the facts stated in a return and make necessary inquiry and then pass a prudent order. If the AO fails to do so then such an order can be held as an erroneous order and then the learned CIT can invoke the provisions of Section 263 of IT Act. Side by side, we have also examined that as per Section 263 of IT Act, the commissioner can invoke revisional powers if on examination of the record he considers that the assessment order is erroneous. Therefore, the phrase used in this section "if he considers" postulates that learned Commissioner is require....
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....refore, the main grievance of the appellant is that the view was taken without appreciating the terms of the payment as incorporated in the agreements executed with various telecasting networks; hence, an opportunity deserves to be granted by the learned Commissioner, if so directed. 6.2 In view of the above discussion, two things emerges, one that the revisional powers invoked by learned Commissioner appears to be corrected because the AO has not examined the applicability of the provisions of Section 194C to be read with Section 40(a)(ia). The assessment order being silent on this aspect; hence, under the powers prescribed to learned Commissioner the matter can be examined by him. But the second aspect is whether the learned Commission....