TaxTMI 
TaxTMI 
TaxTMI 
2017 (3) TMI 1617
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.... Research Expenses of Rs. 95,00,000/- and Media Monitoring Expenses of Rs. 19,00,000 (wrongly considered as Rs. 35,00,000/- by the Ld. A.O.) paid by the appellant instead and in place of Section 194C (the actual amount of expenses are Rs. 96,00,626/- for Market Research and are Rs. 18,52,135/- for Media Monitoring). 1.2 Without prejudice to the above and in alternate, the CIT(A) erred in not excluding the following while calculating short deduction of tax at source in respect of Market Research Expenses and Media Monitoring Expenses:- Sr No. Particulars Market Research Expenses (in Rs.) Media Monitoring Expenses (in Rs.) (i) Amounts where lower deduction certificate were submitted by payees 18,76,275 NA (ii) Amounts where TDS @ ....
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....s not deducted at source while making such payments. On the basis of the information gathered during the course of survey, the Assessing Officer initiated proceedings under section 201(1)/201(1A) of the Act by issuing show cause notice to the assessee. Since in the present appeal, we are concerned with demand raised in relation to payment made towards market research and media monitoring charges, over discussion is restricted to these two issues only. 4. As far as market research is concerned, it was submitted by the assessee that these payments, per-se, were not for advertising but for research activities carried out by certain parties on behalf of the assessee in relation to advertisement. It was submitted, in respect of payments made to....
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.... advises the clients in relation to the market condition relating to different products and accordingly block space in different media like press, print, radio, TV channels, internet websites, etc., for advertising agency who actually do the advertising work. The learned Authorised Representative taking us through the details of TDS placed at Page-9 of the paper book submitted, as far as market research charges are concerned, the total amount paid during the year was Rs. 95 lakh out of which the payment made to Media Research User Council were covered under the lower TDS certificate provided by vendor. He submitted, as far as the balance payment is concerned, the assessee has deducted tax at source under sections 194C and 194J of the Act lo....
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....ca-Cola Beverage (P.) Ltd. V. CIT[2007] 293 ITR 226. Learned Authorised Representative submitted, though, the assessee had filed an application under section 154 of the Act before the Assessing Officer pointing out the mistake in figures, the Assessing Officer has not taken any action on the same. 8. Learned Departmental Representative on the other hand relied upon the observations of the Assessing Officer and the learned Commissioner (Appeals). 9. We have considered the submissions of the parties and perused the material available on record. As far as payment made towards market research services is concerned, from the details submitted by the assessee at Page-9 of the paper book, we have noticed that out of the total payment made of Rs.....
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....return of income filed by him has taken into account such payment for computing income and has paid the tax due on the income declared by him in such return of income. The aforesaid proviso to section 201(1) being clarificatory in nature would also apply retrospectively as held by the different judicial authorities. In view of the aforesaid factual and legal position, since the payment made to TAM Media Research Pvt. Ltd. has been offered as income by concerned party in its return of income and tax has been paid, the assessee cannot be treated as an assessee in default for deducting tax at a lower rate on such payment. Therefore, it leaves us with an amount of Rs. 24,13,225, which requires consideration whether the provision of section 201(....
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....ards media monitoring is concerned, we have noticed, the Assessing Officer considered an amount of Rs. 35 lakh to be the payment made by the assessee. However, as per the figures mentioned in Para-3 & 4 of Assessing Officer's order, such figure, prima-facie, appears to be pertaining to financial year 2011-12 and not the impugned year. As it appears, the payment made for the impugned assessment year is Rs. 19 lakh. Therefore, there is a mistake apparent in the order of the Assessing Officer. Though, the assessee has filed an application for rectification of mistake as far back as on 29th October 2013 as submitted by the learned Authorised Representative, it still remains pending. In our view, such approach of the Assessing Officer cannot....