2012 (5) TMI 706

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....unting to Rs. 29,78,272/- by the Assessing Officer. 3. The brief facts of the case are that the assessee is engaged in the business of advertising agency working as agent of some newspapers. During the assessment proceeding, the Assessing Officer observed that the assessee has claimed advertisement expenses of Rs. 1,07,12,129/- to various parties including media. The assessee was asked to furnish the complete detail in respect of these payments. On verification by the details furnished by the assessee it was found that assessee has paid/credited Rs. 29,78,272/- to the following agencies:- Sr. No. Name of the Agency Amount paid/Credited 1. Baroda Advertisement Agency Rs. 12,94,959/- 2. Tej. Publication Rs. 3,47,....

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.... has to transfer the advertisements so received directly from the clients who deduct TDS from the payments for such advertisement and the assessee is merely acting as sub-agent on commission basis only. He is not required to deduct TDS from the payments made to different advertising agencies. For making this submission, a reliance was placed by the assessee upon the clarification issued by CBDT, New Delhi vide circular No. 452, dated 17.03.1986. The reliance was also placed on the decision delivered in the case of CIT vs. Heros Publicity Services wherein it was held that the amount of payment/receipt received by an agent is not to be taken into account while calculating the limit of Rs. 40 lacs for the purpose of tax audit under Section 44A....