TaxTMI 
TaxTMI 
2016 (11) TMI 956
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....d, the Tribunal has remanded matter back to the file of the Commissioner of Income-tax (Appeals) to readjudicate the issue on merit and consider whether the payments made to local artists and models attract the provision of section 194J of the Income-tax Act, 1961 (hereinafter "the Act"). As per the said direction of the Tribunal the Commissioner of Income-tax (Appeals) has passed this impugned order confirming the order of the Assessing Officer that the payment made to the artists and models attracted section 194J of the Act. The only issue that has been raised before us is in respect to the issue as to whether the payments made by the assessee to the artist and models would attract section 194J or not. 3. Brief facts of the case is tha....
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....ists and models details of which are given in page 38 of the assessment order was disallowed under section 40(a)(ia) of the Act and he thus disallowed Rs. 22,65,257. In appeal the Commissioner of Income-tax (Appeals) confirmed the said order of the Assessing Officer in second round also. Aggrieved the assessee is before us. 4. We have heard both the parties and perused the records. First of all we would like to reproduce the Commissioner of Income-tax (Appeals) order wherein he was of the opinion that the payments made to the artists and models attract section 194J of the Act. "4.4 I have also considered the decisions of Kodak India P. Ltd. v. Deputy CIT [2013] 22 ITR (Trib) 721 (Mum) in ITA No. 9080 of 2010 of Mumbai ITAT in which pa....
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....ceeded Rs. 30,000 in the year, therefore there is no force in the argument of the learned authorised representative that payment to Rhythm was not attracted under section 194J. Therefore in my opinion all payments are covered under the provisions of section 194J and the TDS was required to be deducted under section 194J on these payments. Having failed to do, I find that the disallowances of these payments under section40(a)(ia) has been rightly made by the Assessing Officer. Accordingly the original grounds of appeal Nos. 3, 4 and 5 are rejected and disallowance under section 40(a)(ia) is confirmed." 5. We note that section 194J is attracted when fees is given for professional or technical services. Professional service have be....
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....ices pursuant to production of film. However, an artist/entertainer will not be film artist if he entertains people not involved in production of film. The case of the revenue is not that Jasbir Jassi, Kunal Ganjawala have performed an activity while film production was going on and the assessee had made the payment, for the said activity performed by these persons. There is no doubt that Jasbir Jassi, Kunal Ganjawala and others are artists and if they perform in film as an actor or director or music director or assistant director or art director or singer or editor or lyricist or story writer or dialogue writer or as a dress designer could have attracted section 194J of the Act. It is not the case of the revenue that the assessee was produ....