2016 (5) TMI 37

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....emarks "no such firm". Under these circumstances we proceed to dispose of the departmental appeal, ex parte, qua the assessee and in that process we have heard ld. DR and perused the material available on record. 3. Brief facts of the case are that assessee had filed return declaring income of Rs. 26,91,30,450/-. The assessee company, in the relevant assessment year carried on the business of service provider and was engaged in providing of events and programmes meant for broadcasting. The assessee used its own equipment and employees to provide these services and mainly to T.V. channels. During the year under consideration the AO noticed that assessee company had made certain payments and no TDS had been deducted thereon. He, therefore, m....

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....l: "1. That the Commissioner of Income Tax (Appeals) erred in law and on facts of the case in deleting the addition of Rs. 4,25,300/- made by AO on account of disallowance u/s 40(a)(ia) of the I.T.Act,1961. 2. That the Commissioner of Income Tax (Appeals) erred in law-and on facts of the case in deleting the addition of Rs. 46,11,914/- made by the AO on account of interest on delayed payment of service tax. 3. (a) The order of the CIT(A) is erroneous and not tenable in law and on facts. (b) The appellant craves leave to add, alter or amend any/ all of the grounds of appeal before or during the course of the hearing of the appeal. 7. Apropos ground no. 1, ld. CIT(A) after detailed examination of facts and written submissions, re....

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....gned expenditure on account of engaging some camera attendants on ad-hoc basis i.e. for a day or two or as and when required basis. Obviously, an activity of engaging some camera attendants for using them in the business of providing of video production services would not amount to contract for carrying out of 'work' as contemplated under section 194C of the I.T. Act, 1961. There is no material on record to demonstrate that the impugned payments constituted payments for carrying out of any work within the meaning of section 194C. of the Act. The Assessing Officer has not asserted that there was any contract between the appellant and the above individuals for providing services as camera attendants. Engaging some persons on 'ad-h....

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....us case laws relied upon by it, I find that the expenditure in respect of payments of interest on late deposit of service tax is an allowable business expenditure incurred by the appellant for the purpose of carrying on its business. The interest on delayed payments of service tax is certainly compensatory in nature and hence allowable as deduction as it is not in the nature of penalty. The facts of the cases cited by the Assessing Officer are completely different from the facts of the instant case as they relate to non-compliance of specific provisions of Income-tax Act and payment of penalty for nonpayment/ delayed payment of sales-tax. Penalty and interest are two different things and thus cannot be equated. The penalty is an impost for ....