ITO(TDS),Wd-58(3),Kolkata, Kolkata V. M/s Media Worldwide Pvt. Ltd., Kolkata

ITA 1422/KOL/2012

• Counselvise Citation: 142223514 RSA 2012
• Duration Of Justice: 1 year(s) 10 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-08-2014
• Appeal Filed By: Department
• Bench Allotted: B
• Next Hearing Date: 29-08-2014
• Assessment Year: 2010-2011
• Appeal Filed On: 05-10-2012
• Court: TRIBUNAL
• Section: 194C

Judgement Text

ITA NO.1422/KOL/12-B-AM M/S. MEDIA WORLDWIDE P.LTD. 1 , B IN THE INCOME TAX APPELLATE TRIBUNAL, B BENCH: KO LKATA ( ) , 1 , BEFORE HONBLE SRI SHAMIM YAHYA, AM & HONBLE SRI GEORGE MATHAN, JM $ / ITA NO. 1422/KOL/2012 A.Y 2010-11 I.T.O (TDS) WARD 58(3), KOLKATA - - - VERSUS - . M/S. MEDIA WORLDWIDE PVT. LTD PAN: CALM09342E ( % / APPELLANT ) ( &'% / RESPONDENT ) FOR THE APPELLANT: FOR THE RESPONDENT : /SHRI DAVID Z.CHANGTHU, ACIT/SR.DR / SHRI GIRISH SHARMA, FCA, LD.AR * + /DATE OF HEARING: 29-08-2014 * + /DATE OF PRONOUNCEMENT: 29--08-2014 / ORDER , SHRI SHAMIM YAHYA, AM THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAIN ST THE ORDER OF THE LD. CIT(A) DATED 16.07.2012 PERTAINING TO ASSESSMENT YEAR 200 9-10. 2. THE GROUNDS OF APPEAL RAISED BY THE REVENUE REA D AS UNDER:- ISSUE NO.1 THE NATURE OF SERVICE RENDERED BY PAYEE I.E. MSO IS PURELY OF TECHNICAL NATURE I.E. PROVIDING UP LINKING FACILITY VIA-SATELLITE. ISSUE NO.2 MSO IS NEITHER PRODUCING THE PROGRAMME NOR TELECASTING THEM. IT IS MERELY A CONDUIT PROVIDING UP LINKING FACILITY AFTER PRODUCTION OF THE PROGRAMME TO THE TELECASTER CHANNEL. 3. IN THIS CASE THE BRIEF FACTS ARE THAT THE ASSESS EE WAS ENGAGED IN BUSINESS OF MEDIA BROADCASTING AND TELECASTING WITH REVENUE OF RS.21 .42 CRORES AS PER SCHEDULE-11 OF THE PROFIT & LOSS A/C AND THE ASSESSEE COMPANY ENTERED INTO AN UPLINKING SERVICE AGREEMENT WITH ESSEL SHYAM COMMUNICATION LTD (ESCL) FOR UPLIN KING AND BAND WIDTH SERVICES AND WITH CELEBRITIES MANAGEMENT PVT. LTD (CMPL) FOR AIR TIME SERVICE CHARGES. ASSESSEE ITA NO.1422/KOL/12-B-AM M/S. MEDIA WORLDWIDE P.LTD. 2 COMPANY DEDUCTED TDS U/S. 194C ON THE CHARGES PAI D TO THESE COMPANIES AS PER THE TERMS OF THE AGREEMENTS WITH THEM. ASSESSING OFFIC ER APPLIED SECTION 194J AND HELD THAT THE SERVICES WERE TECHNICAL IN NATURE. 4. UPON THE ASSESSEES APPEAL THE LD. CIT(A) HAS DECIDED THE ISSUE IN FAVOUR OF THE ASSESSEE BY OBSERVING AS UNDER:- THE ESCL WAS HOLDING LICENSE FROM MINISTRY OF IN FORMATION AND BROADCASTING, GOVT. OF INDIA FOR PROVIDING THESE SE RVICES. THESE EXPENSES ARE DEBITED IN PROFIT & LOSS A/C IN SCEDHULE-13. T HE SERVICES OF UPLINKING BAND WIDTH SERVICES, AIR TIME AND CHANNEL CARRIAGES TO MSOS WERE RELATED TO BROADCASTING AND TELECASTING WHICH IS C OVERED SPECIFICALLY BY DEFINITION OF WORK IN SECTION 194C(IV)(B) IN THE EXPLANATION PART OF THE SECTION ITSELF. THESE SERVICES REQUIRED USE OF S OPHISTICATED EQUIPMENT FOR TRANSMISSION OF ASSESSEES PROGRAMMES AND THIS EQU IPMENT WAS MADE AVAILABLE TO THE ASSESSEE COMPANY FOR WHICH ASSESS EE HAD MADE PAYMENTS AFTER DEDUCTION TDS U/S. 194C OF THE I.T ACT. KEEP ING IN VIEW THESE FACTS AND CIRCUMSTANCES, SECTION 194J IS NOT APPLICABLE T O THE FACTS OF THE CASE. MOREOVER, ASSESSEE HAD PROVIDED THE DETAILS OF INC OME-TAX ASSESSMENT RETURNS AND THEIR PANS OF ALL THESE COMPANIES WITH WHOM THE TRANSACTIONS WERE MADE AND RELIED UPON JUDGMENT OF SUPREME COURT 293 ITR 226(SC) IN THE CASE OF HINDUSTHAN COCA COLA LTD & CBDT CIRC ULAR DT. 29.01.1997. KEEPING IN VIEW THE ABOVE FACTS AND CI RCUMSTANCES, GROUND NO. 1 &2 ARE ALLOWED. 5. AGAINST THE ABOVE ORDER, THE REVENUE IS IN APPEA L BEFORE US. 6. AT THE OUTSET THE LD. COUNSEL OF THE ASSESSEE HA S SUBMITTED THAT THIS ISSUE IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE BY THE DECISION O F ITAT, KOLKATA, C BENCH, KOLKATA IN THE CASE OF ITO(TDS), W 57(1), KOL VS. M/S. SRISTI TELEVISION (PROP: ASHOK AGARWAL) IN ITA NOS. 1297/KOL/12 & 276/KOL/2013 FOR A.YS. 2009- 10, 2010-11 & 2011-12 VIDE ORDER DATED 24-12-2013. 7. THE LD.DR COULD NOT CONTROVERT THE ABOVE SUBMISS IONS OF THE LD. COUNSEL OF ASSESSEE AND COULD NOT PRODUCE ANY CONTRARY EVIDEN CE BEFORE US. ITA NO.1422/KOL/12-B-AM M/S. MEDIA WORLDWIDE P.LTD. 3 8 UPON CAREFUL CONSIDERATION OF THE SUBMISSIONS, WE FIND THAT IDENTICAL ISSUE WAS CONSIDERED BY THE TRIBUNAL IN THE CASE OF M/S. SRIS TI TELEVISION (REFERRED TO SUPRA). WE FIND THAT THE TRIBUNAL HAS ADJUDICATED THE ISSUE AS UNDE R:- 8. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE CAN GAINFULLY REFER TO THE PROVISIONS O F SECTIONS 194C AND 194J, WHICH ARE REPRODUCED AS UNDER:- 194C-PAYMENTS TO CONTRACTORS : ANY PERSON RESPONSIBLE FOR PAYING ANY SUM TO ANY RESIDENT (HEREAFTER IN THIS SECTION REF ERRED TO AS THE CONTRACTOR) FOR CARRYING OUT ANY WORK (INCLUDING SUPPLY OF LABOUR FOR CARRYING OUT ANY WORK) IN PURSUANCE OF A CONTRAC T BETWEEN THE CONTRACTOR AND A SPECIFIED PERSON SHALL, AT THE TIM E OF CREDIT OF SUCH SUM TO THE ACCOUNT OF THE CONTRACTOR OR AT THE TIME O F PAYMENT THEREOF IN CASH OR BY ISSUE OF A CHEQUE OR DRAFT OR BY ANY OTHER MODE, WHICHEVER IS EARLIER, DEDUCT AN AMOUNT EQUAL TO. 194J-FEES FOR PROFESSIONAL OR TECHNICAL SERVICES: (1) ANY PERSON, NOT BEING AN INDIVIDUAL OR A HINDU UNDIVIDED FAMILY, WHO IS RESPONSIBLE FOR PAYING RESIDENT ANY SUM BY W AY OF- (A) FEES FOR PROFESSIONAL SERVICES, OR (B) FEES FOR TECHNICAL SERVICES, (C) ROYALTY, OR (D) ANY SUM REFERRED TO IN CLAUSE (VA) OF SECTION 28, SHALL, AT THE TIME OF CREDIT OF SUCH SUM TO THE ACC OUNT OF THE PAYEE OR AT THE TIME OF PAYMENT THEREOF IN OR BY ISSUE OF A CHE QUE OR DRAFT OR BY ANY OTHER MODE, WHICHEVER IS EARLIER, DEDUCT AN AM OUNT EQUAL TO PER CENT, OF SUCH SUM AS INCOME TAX ON INCOME COMPRISED THEREIN. WE FIND THAT THE ASSESSEE PRODUCED VARIOUS TYPES O F PROGRAMMES/SERIALS AND NEWS AND THESE WERE TELECAST ED/BROADCASTED THROUGH MULTI SYSTEM OPERATORS FOR WHICH PAYMENTS W ERE MADE TO THEM UNDER THE HEAD CARRIAGE CHARGES. THE ASSESSEE HA S DULY DEDUCTED AND PAID TAX UNDER SECTION 194C OF THE ACT. WE AGREE WI TH THE LD. CIT(APPEALS) THAT NO TECHNICAL SERVICES WERE INVOLVED IN PAYMENT OF CARRIAGE CHARGES MADE BY THE ASSESSEE FOR BROADCASTING OF THE PROGRA MMES PRODUCED BY THE ASSESSEE. THE ASSESSEE PRODUCED VARIOUS TYPES OF PR OGRAMMES/SERIALS AND NEWS AND THESE WERE TELECASTED/BROADCASTED THROUGH MULTI SYSTEM OPERATORS. PAYMENTS IN THIS REGARD WERE MADE AS CAR RIAGE CHARGES FOR ITA NO.1422/KOL/12-B-AM M/S. MEDIA WORLDWIDE P.LTD. 4 WHICH PAYMENT OF TAX WAS DEDUCTIBLE UNDER SECTION 1 94C OF THE INCOME TAX ACT. AS PER DEFINITION OF TECHNICAL SERVICES GIVEN IN EXPLANATION TO SECTION 9 OF THE ACT, THE DEDUCTEE SHOULD HAVE RENDERED MANAG ERIAL, TECHNICAL OR CONSULTANCY SERVICES. IN THIS CASE, WE FIND THAT TH ERE IS NO SUCH FINDING OF THE ASSESSING OFFICER. THE DEDUCTEE HAS ONLY TELECA STED THE PROGRAMMES PRODUCED BY THE ASSESSEE. IN THIS CASE LAW REFERRED TO BY THE LD.CIT(APPEALS) DECISION IN THE CASE OF DCIT VS- NNM SECURITIES LIMITED, ITAT HELD THAT IF THE ASSESSEE IS USING ANY FACILIT Y OF ANY ONE THE SAME IS NOT TECHNICAL SERVICES. HONBLE PUNJAB & HARYANA H IGH COURT IN THE CASE OF KARUKSHETRA DARPAN (P) LTD VS- CIT [217 CTR 326 ] HAS HELD THAT TELECASTING ON THE PROGRAMME WAS COVERED UNDER SECT ION 194C OF THE ACT. 9. IN THE BACKGROUND OF THE ABOVE DISCUSSION AND FO LLOWING THE PRECEDENT AS ABOVE, WE DO NOT FIND ANY REASON TO IN TERFERE WITH THE ORDER OF THE LD.CIT(APPEALS). ACCORDINGLY, WE UPHOLD THE SAM E. SINCE THE FACTS IN THE CASE BEFORE US ARE IDENTICA L, RESPECTFULLY FOLLOWING THE ABOVE PRECEDENT, WE UPHOLD THE ORDER OF THE LD.CIT(A) ON THIS ISSUE. ACCORDINGLY, THIS APPEAL OF THE REVENUE STANDS DISMISSED. 9. IN THE RESULT, THE ABOVE APPEAL OF THE REVENUE STANDS DISMISSED. . + ORDER PRONOUNCED IN THE OPEN COURT ON 29/08/2014 SD/- SD/- [ 1 , ] [ , ] [ GEORGE MATHAN, JUDICIAL MEMBER ] [ SHAMIM YAHYA, ACCOUNTANT MEMBER ( + ) DATED :29/08/2014 ** PRADIP SPS * &2 32 / COPY OF THE ORDER FORWARDED TO: 1. . % / THE APPELLANT : I T O (TDS) W 58(3) 10B, MIDDLE TON ROW, KOL-71. 2 &'% / THE RESPONDENT- M/S. MEDIA WORLDWIDE PVT. LTD 54/1 RAFI AHMED KIDWAI RD, KOL-16. 3. 5. / THE CIT, 4. ( )/ THE CIT(A) & / DR, KOLKATA BENCH 6.GUARD FILE . '2 & / TRUE COPY, / BY ORDER, / ASSTT REGIST RAR ITA NO.1422/KOL/12-B-AM M/S. MEDIA WORLDWIDE P.LTD. 5