CHHAYA PRAKASHANI LTD.,KOLKATA V. DCIT, CIRCLE 11(1), KOLKATA

ITA 1736/KOL/2025

AI Insights

The case revolves around an appeal by Chhaya Prakashani Limited against the order of the CIT(A), National Faceless Appeal Centre, Delhi, which confirmed the addition made by the Assessing Officer regarding short deduction of TDS. The dispute centered on whether TDS should be deducted at 10% under Section 194J or at 2% under Section 194C of the Income Tax Act. The Tribunal referenced a prior decision where it was held that the correct provision was Section 194C, leading to the allowance of the assessee's appeal and the deletion of the addition made by the Assessing Officer.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 788677 (ITAT-KOLKATA)
• Duration Of Justice: 3 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-11-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 01-08-2025
• Other Referred Cases: ITA No. 579 to 583/KOL/2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANDEEP LAKRA
• Assessee Lawyers: S.K.KAMALUDDIN
• Keywords: Set aside; TDS
• Section: 40(a)(ia); 194C

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, KOLKATA BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI SANJAY AWASTHI, ACCOUNTANT MEMBER ITA No.1736/KOL/2025 (निर्धारण वर्ा /Assessment Year : 2018-2019) Chhaya Prakashani Limited, 1, Bidhan Sarani, College Street, Kolkata-700073 Vs DCIT, Circle-11 (1), Kolkata PAN No. : AACCC 9925 B TAN No.: CALC 05853 B (अपीलधर्थी /Appellant) .. (प्रत्यर्थी / Respondent) निर्धाररती की ओर से /Assessee by : Shri S.K. Kamaluddin, FCA रधजस्व की ओर से /Revenue by : Shri Sandeep Lakra, Sr. DR सुनवाई की तारीख / Date of Hearing : 24/11/2025 घोषणा की तारीख/Date of Pronouncement : 24/11/2025 आदेश / O R D E R Per Bench: This is an appeal filed by the assessee against the order passed by the ld. CIT(A), National Faceless Appeal Centre (NFAC), Delhi, dated 26.06.2025 for the assessment year 2018-2019. 2. It was submitted by the ld. AR that the issue is against the addition made by the AO and confirmed by the ld.CIT(A) invoking the provisions of Section 40(a)(ia) of the Act on account of short deduction of TDS. It was the submission that in the course of survey, it was noticed that the assessee had deducted TDS @ 2% of the payment, whereas the Assessing Officer was of the view that the TDS @ 10% is liable to be deducted in view provision of section 194J of the Act. It was the submission that the assessee has deducted TDS @ 2% by applying the provisions of section 194C of the Act. Ld AR of the assessee drew our attention to the decision of the Co- ordinate Bench of this Tribunal in the case of the assessee in ITA No. 579 Printed from counselvise.com ITANo.1736/Kol/2025 2 to 583/Kol/2025 order dated 4.11.2025 in respect of an order u/s. 201 of the Act and has held that the TDS is liable to be deducted u/s.194C and not u/s.194J of the Act The Co-ordinate Bench has held in para 6 as follows: “06. After hearing the rival contentions and perusing the materials available on record, we find that the assessee is engaged in the business of publishing of books mainly education books and sale thereof. For the purpose of composing and DTP work of the assessee company, it had entered into a contract with Publishing Services Pvt. Ltd. for typing and DTP jobs on behalf of the assessee, for which manuscripts were provided by the assessee company. The assessee company has entered into an agreement with the said publisher dated 16.09.2011. We have perused the agreement entered into with the publisher/ recipient and also Provisions of Section 194J of the Act and 194C of the Act and found that the printing services are not technical services within the definition as provided in the explanation to Section 194J of the Act. Therefore, the assessee has correctly deducted the tax at source at the rate of 2% from the contractual payments made to Publishing Services Pvt. ltd. Consequently, we set aside the order of the ld. CIT (A) and direct the ld. AO to delete the demand raised on account of short deduction of tax at source as the assessee is covered under Section 194C of the Act so far as the deduction of TDS is concerned and not u/s 194J. Accordingly, the appeal of the assessee is allowed. “ 3. It was the submission as the order u/s.201 of the Act itself has been held to be quashed and the assessee is liable to be deducted u/s.194C of the Act, the addition, the addition as made by the Assessing Officer under the provisions of section 40 (a)(ia) of the Act does not survive. It was the prayer that the addition as made by the AO and as confirmed by the ld.CIT(A) is liable to be deleted. 4. In reply, ld Sr DR supported the order of the Assessing Officer and ld CIT(A). 5. We have considered the rival submissions. As it is noticed that the issue of TDS u/s.201 of the Act in the case of the assessee has already been decided by the Co-ordinate Bench in favour of the assesse, wherein, it has been held that the TDS is liable to deducted @ 2% under section Printed from counselvise.com ITANo.1736/Kol/2025 3 194C of the Act and as it is noticed that in this case the assessee has already deducted TDS 2% under the provisions of section 194C of the Act, the addition as made by the Assessing Officer by applying the provisions of section 40(as)(ia) of the Act does not survive. Hence, the addition as made by the AO and confirmed by the ld CIT(A) is hereby deleted. 6. In the result, appeal of the assessee stands allowed. Order dictated and pronounced in the open court on 24/11/2025. Sd/- (SANJAY AWASTHI) Sd/- (GEORGE MATHAN) लेखा सदस्य/ ACCOUNTANT MEMBER न्यधनयक सदस्य / JUDICIAL MEMBER कोलकाता Kolkata; ददनाांक Dated 24/11/2025 Prakash Kumar Mishra, Sr.P.S. आदेश की प्रनतललपप अग्रेपर्त/Copy of the Order forwarded to : आदेशधिुसधर/ BY ORDER, (Assistant Registrar) Income Tax Appellate Tribunal, Kolkata 1. अपीलार्थी / The Appellant- 2. प्रत्यर्थी / The Respondent- 3. आयकर आयुक्त(अपील) / The CIT(A), 4. आयकर आयुक्त / CIT 5. विभागीय प्रविविवि, आयकर अपीलीय अविकरण, कोलकाता / DR, ITAT, Kolkata 6. गार्ड फाईल / Guard file. सत्यापपत प्रतत //True Copy// Printed from counselvise.com "