2019 (9) TMI 1079

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....ies below. 3. Ground No.1 is general and need no adjudication. 4. On Ground No.2, assessee challenged the Order of the Ld. CIT(A) in holding the expenses on Advertising and Exhibition of Rs. 4,04,496/- covered under section 194C instead of under section 194-I of the Income Tax Act, 1961. The authorities below noted that assessee is engaged in the business of manufacturing of gold and diamond jewellery ornaments. A survey operation was carried-out at the premises of the assessee on 05.03.2013 to examine the compliance of the TDS provisions. The A.O. passed the Order under section 201(1)/201(1A) of the Income Tax Act, 1961 on Dated 27.03.2015. Accordingly, demand was raised on the above issue of payment of rent. It is noted by the authorit....

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....as Rs. 3,60,000/- + Service Tax i.e., Rs. 44,496/- and TDS is not deductible on the service tax component. This plea was accepted and A.O. was directed to revise the demand under section 201(1)/201(1A) of the Income Tax Act, 1961. 5. Director for the Assessee reiterated the submissions made before the authorities below and submitted that for the promotion of its sale and to contract new customers, it organized business to business and business to customers sales through various exhibitions, organized by Event Companies/Jewellery Exhibition Organisers. After taking the raw space, they put-up stalls for exhibition to showcase their jewellery for three days. The assessee deducted TDS under section 194C @ 2%. The Exhibition Organisers is not s....

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...., space is allotted to the assessee for carrying-out its business activities. Thus, a property for a limited time have been rented out to the assessee. Thus, the assessee were liable to deduct TDS under section 194-I of the I.T. Act. In the absence of any evidence on record, no interference is called for in the matter. The assessee, lastly relied upon Judgment of Hon'ble Supreme Court in the case of M/s. Japan Airlines Company Ltd., vs., CIT, New Delhi in Civil Appeal No.9875 of 2013 Dated 04.08.2015. In this case, Airports Authority of India charging the amount for landing and take-off services as well as parking of air-crafts as well as for other services and facilities offered in connection with the air-craft operations at Air Port. Thus....

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....61. This ground of assessee was accordingly dismissed. 9. The Assessee reiterated the submissions made before the authorities below and submitted that assessee had reimbursed to its distributor M/s. OM Diamond Jewellers the aforesaid sum which was spent by M/s. OM Diamond Jewellers on purchasing of signboards etc., to be put-up on the shop of retailers serviced by him. This payment was made by the assessee vide credit note dated 15.02.2013. These are bills of purchase and are not works, so, no tax is deductible. All the payments are made to the distributor M/s. OM Diamond Jewellers. It was a mere reimbursement of the expenses only. 10. The Ld. D.R. on the other hand relied upon the Orders of the authorities below. 11. We have considered ....