TaxTMI 
TaxTMI 
TaxTMI 
2018 (11) TMI 695
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....duction to be made under section 194J of the Act in respect Carriage Fees/ Channel Placement Fees'. As these payments are made for use/ right to use of process and are royalty as per explanation 6 under section 9(1)(vi) of the Act and therefore covered under section 194J of the Act. For this Revenue has raised identically worded grounds in both the years and facts are exactly identical in both the years. Hence, we will take the facts from ITA No. 3689/Mum/2017 for AY 2011-12 and decide the issue. The grounds raised by Revenue reads as under: - "A) Whether on the facts and circumstances of the case and as per law, the ld. CIT(A) was justified in directing to delete the disallowance u/s. 40(a)(ia) rws 194J in respect of Carriage Fees/ Channel Placement Fees' and failing to appreciate that the same are payments made for use/right to use of 'process' are royalty' as per Explanation 6 to section 9(1)(vi) and /therefore covered u/s. 194J of the Income-tax Act, 1961? B) Whether on the facts, in the circumstances of the case and as per law, the ld. CIT(A) has erred in directing to delete the disallowance u/s. 40(a)(ia) rws 194J of 'Carriage Fees/Channel Placement Fe....
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....hnical services provided to it by the MSO/Cable Operators; hence the case of the assessee comes within the ambit of "fees" for technical services which comes within the ambit of the provisions contained in Section 194J of the Act and accordingly, TDS was required to be deducted, but the assessee deducted TDS as per the provisions of Section 194C of the Act wrongly, therefore, the order of the AO passed u/s 201/201(A) of the Act dated 18-03-2011 is quite legal and in accordance with law. But, the learned CIT(A) has wrongly arrived at his conclusion that the case of the assessee falls within the ambit of the provisions of Section 194C of the Act. Hence, the order of the learned CIT(A) dated 31- 12-2012 is not liable to be sustainable in the eyes of law and submitted that the order of the AO may be restored by setting the order in question. 5. On the other hand, the learned Representative of the assessee [hereinafter referred to "the AR"] argued that the assessee company is engaged in the business of broadcasting business news through TV Channels and submitted that the payment is covered specifically under the provisions of section 194C. He has referred to the Explanation to section....
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....ance the viewership and better advertisement revenue. In the case of Kurukshetra Darpans (P) Ltd. Vs. CIT (supra), the Hon‟ble High Court of Punjab & Haryana while dealing with an identical question has held in Para 13 to 18 as under:- "13. After hearing learned counsel for the parties, we are of the view that the contentions of the counsel for the appellant are liable to be rejected. Sec. 194C of the Act creates an obligation on a person responsible for paying any sum specified therein to a person for carrying out any work, to deduct the tax at source.' Presently, we are concerned with the „work' as referred to in cl(b) of Expln. III below s. 194C(2)of the Act. 14. In terms of the said Explanation. it is provided that expression 'work' shall include inter alia broadcasting and telecasting including production of programmes for such broadcasting and telecasting. By way of such Explanation, it is evident that where the payment is for a work involving broadcasting and telecasting, the same shall be subject to deduction of. tax at source in terms of section 194 of the Act, the assessee is a cable network operator through which it provides telecasting of....
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....es in India, the service that is referred to in the agreement is the broadcasting and telecasting of TV signals. 18. For the reasons recorded above, we have no hesitation in concluding that the Tribunal was correct in holding that the assessee was required to deduct tax at source in terms of s. 194C of the Act on payments made to the licensor for obtaining TV signals, Cable TV network owned by the assessee. 7. Thus after examination of the Explanation III to the then section 194C, the Hon'ble High Court held that the payment for obtaining the telecast licenses from the licensor falls under the provisions of section 194C. We find that the work of broadcasting/telecasting including production of programme or such broadcasting or telecasting falls under the definition of "work" as provided under clause (iv) of the Explanation to section 194C which reads as under:-" Explanation - For the purpose of this section - ********************************* ********************************* (iv) "work" shall include- (a) Advertising; (b) Broadcasting and telecasting including production of programmes for such broadcasting or telecasting (c) Carriage of goods or passengers by any mod....