DCIT, Cir.1(1)(1), Ahmedabad V. Aakriti Promotion & Media Ltd., Ahmedabad

ITA 2464/AHD/2017

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 4621 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-11-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2011-2012
• Appeal Filed On: 07-11-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: TDS
• Section: 143(3); 40(a)(ia); 194C; 201

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD B BENCH BEFORE: SHR I RAJPAL YADAV , JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER THE DCIT, CIRCLE - 1(1)(1), AHMEDABAD (APPELLANT) VS AAKRITI PROMOTIONS & MEDIA LTD. M - 1, SURYARATH, PANCHWATI, ELLISBRIDGE, AHMEDABAD - 380009 PAN: AAHCA9949G (RESPONDENT) REVENUE BY : S H RI MUDIT NAGPAL , SR. D . R. ASSESSEE BY: SHRI TUSHAR HEMANI , A.R. DATE OF HEARING : 27 - 09 - 2 019 DATE OF PRONOUNCEMENT : 15 - 11 - 2 019 / ORDER P ER : AMARJIT SINGH, ACCOUNTANT MEMBER : - THIS REVENUE S APPEAL FOR A.Y. 2011 - 12 , ARI SES FROM ORDER OF THE CIT(A) - 1, AHMEDABAD DATED 22 - 08 - 2 017 , IN PROCEEDINGS UNDER SECTION 1 4 3(3) R.W.S. 263 OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT . 2. THE SOLITARY GROUND OF APPEAL OF THE REVENUE IS AGA INST THE DECISION OF LD. CIT(A) IN DELETING THE ADDITION OF RS. 4 , 45 , 71 , 144/ - MADE U/S. 40(A)(IA) OF THE ACT. I T A NO . 2464 / A HD/20 17 A SS ESSMENT YEAR 2011 - 12 I.T.A NO. 2464 /AHD/20 17 A.Y. 2011 - 12 PAGE NO DCIT VS. AAKRITI PROMOTIONS & MEDIA LTD. 2 3. THE FACT IN BRIEF IS THAT ASSESSMENT IN THE CASE OF THE ASSESSEE WAS FINALIZED U/S. 143(3) OF THE ACT ON 28 TH FEB, 2014 BY ACCEPTING THE RET URNED INCOME. SUBSEQUENTLY, THE PR. CIT - 1 HAS PASSED ORDER U/S. 263 OF THE ACT ON 26 TH FEB, 2016 AND HELD THAT ASSESSMENT ORDER U/S. 143(3) PASSED BY THE ASSESSING OFFICER WAS ERRONEOUS AND PREJUDICIAL TO THE INTEREST OF REVENUE AS THE ASSESSEE HAS NOT DE DUCTED TAX U/S. 194C OF THE ACT ON PAYMENT OF RS. 4 , 45 , 71 , 144/ - . DURING THE COURSE OF ASSESSMENT PROCEEDINGS IN PURSUANCE TO ORDER U/S. 263 OF THE ACT, THE ASSESSEE SUBMITTED THAT PAYMENT OF RS. 3 , 06 , 16 , 619/ - WAS MADE TO PRINT MEDIA ON WHICH SECTION 1 94C WA S NOT APPLICABLE AND RS. 34 , 06 , 799/ - WAS PAID TO ADVERTISEMENT AGENCIES ON WHICH TDS U/S. 194C DEDUCTED AND PAID . T HEREFORE , NO DISALLO WANCE IS TO BE MADE U/S. 40(A)( I A ) OF TH E ACT. THE ASSESSEE HAS ALSO REFERRED CIRCULAR ISSUED BY THE CBDT I.E. CIR CULAR NO. 715 DATED 8 TH AUGUST, 1995 AND CIRCULAR NO. 5/2002 DATED 30 TH JULY, 2002 AND CONTENDED THAT IN THESE CIRCULARS, IT IS CLEARLY EXPLAINED THAT SECTION 194C IS NOT APPLICABLE IN RESPEC T OF PAYMENT MADE BY ADVERTISEMENT AGENCY D IRECTLY TO MEDIA FOR A DVERTISEMENT EXPENSES. T HE ASSESSING OFFICER HAS NOT ACCEPTED THE SUBMISSION OF THE ASSESSEE AND DISALLOWED TOTAL AMOUNT OF RS. 4 , 45 , 71 , 144/ - U/S. 40(A)(IA) OF THE ACT. 4. AGGRIEVED ASSESSEE HAS FILED APPEAL BEFORE THE LD. CIT(A). BEFORE THE LD. CIT(A) , THE ASSESSEE HAS SUB MITTED THAT TOTAL EXPENDITURE ON PRINT MEDIA MADE BY THE ASSESSEE AS PER ITS PROFIT AND LOSS ACCOUNT WAS ONLY RS. 3 , 40 , 22 , 3418/ - INCLUDING RS. 34 , 06 , 799/ - PAID TO OTHER ADVERTISING AGENCIES ON WHICH TAX WAS DEDUCTED. T HE ASSESSING OF FICER HAS INCORRECTLY DISALLOWED RS. 4 , 45 , 71 ,1 14/ - INSTEAD OF RS. 3 , 04 , 71 , 144/ - . T HE LD. CIT(A) HAS DELETED I.T.A NO. 2464 /AHD/20 17 A.Y. 2011 - 12 PAGE NO DCIT VS. AAKRITI PROMOTIONS & MEDIA LTD. 3 THE ENTIRE ADDITION OF RS. 4 , 45 , 71 ,1 44/ - AFTER FOLLOWING THE CIRCULAR NO. 715 DATED 8 TH AUGUST, 1995 AND CIRCULAR NO. 5/2002 DATED 30 TH JULY, 2002 THAT TDS IS NOT DEDUCTIBLE WHEN AN ADVERTISING AGENCY MAKES PAYMENT TO MEDIA. THE LD. CIT(A) HAS ALSO PLACED RELIANCE ON THE DECISION OF JURISDICTIONAL HIGH CO URT IN THE C ASE OF CIT VS. HONEST PUBLICITY (2013) 38 TAXMAN.COM 198(GUJ). 5. WE HAVE HEARD TH E RIVAL CONTENTIONS AND PERUSED THE MATERIA L ON RECORD. IN VIEW OF THE CATEGORICAL FINDING ELABORATED IN THE ORDER OF LD. CIT(A) ON THE BASIS OF ABOVE CITED BOARD S CIRCULARS HO LDING THAT TDS PROVISION WOULD NOT APPLY WHEN AN ADVERTISING AGENCY MAKES PAY MENT TO MEDIA , WE DO NOT FIND ANY SUBSTAN CE IN THE APPEAL OF THE REVENUE , THEREFORE, THE SAME IS DISMISSED. 6. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED. ORDER PR ONOUNCED IN THE OPEN C OURT ON 15 - 11 - 201 9 SD/ - SD/ - ( RAJPAL YADAV ) ( AMARJIT SINGH ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD : DATED 15 /11 /2019 / COPY OF ORDER FORWARDED TO: - 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. I.T.A NO. 2464 /AHD/20 17 A.Y. 2011 - 12 PAGE NO DCIT VS. AAKRITI PROMOTIONS & MEDIA LTD. 4 BY ORDER/ , / ,