2022 (7) TMI 595

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....ellant as an assessee in default is arbitrary and unjust. 2. The Commissioner of Income Tax (Appeals) erred in treating the advertisement charges paid to media directly without considering the documents submitted before him along with arguments notes and grounds of appeals. 3. Treating the payment made to the advertising media like Mathrubhumi, The Madhyamam directly as a payment to contractors and treating the payment made to contractors and treating the appellant as an assessee in default and demanding tax and interest in respect of such payment under section 201 is arbitrary and unjust. 3. Considering the fact that the payments made are within the permissible limits as provided under section 194C of the Income ....

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....94,137/- towards advertisement charges and no TDS has been deducted as per 194C of the Act in the cases wherein single payment of more than Rs.30,000/- and the cumulative payment above Rs.1,00,000/- were paid. Relying on the Circular No. 5 of 2002 dated 30.07.2002 the AO held that the assessee was bound to deduct the required taxes but the assessee failed to do so. Therefore the assessee was held as an assessee in default. Aggrieved by the order of the AO the assessee filed appeal before the CIT(A). The CIT(A) deleted the addition made towards non-deduction of TDS under the head Professional Charges under Section 194J of the Act but he uphold for the non-deduction of tax at source for payment of advertisement charges under Section 194C of t....