NEXT GEN PUBLISHING P.LTD, MUMBAI V. ITO CIR 7(1)(1), MUMBAI

ITA 3212/MUM/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 9825 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 2 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-07-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2011-2012
• Appeal Filed On: 06-05-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUMAN KUMAR
• Assessee Lawyers: R C JAIN

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH B, MUMBAI BEFORE D.T. GARASIA, JUDICIAL MEMBER AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER ITA NO.3212/M/2016 ASSESSMENT YEAR: 2011-12 M/S. NEXT GEN PUBLISHING PRIVATE LIMITED, (FORMERLY NEXT GEN PUBLISHING LIMITED), 2 ND FLOOR, TRADE WORLD, C WING, KAMALA MILLS COMPOUND, S.B. MARG, LOWER PAREL, MUMBAI 400 013 PAN: AACCN 0447M VS. THE ITO CIRCLE 7(1)(1), AAYAKAR BHAVAN, M.K. MARG, MUMBAI - 400020 (APPELLANT) (RESPONDENT) PRESENT FOR: ASSESSEE BY : SHRI R.C. JAIN, A.R. REVENUE BY : SHRI SUMAN KUMAR, D.R. DATE OF HEARING : 12.07.2017 DATE OF PRONOUNCEMENT : 26.07.2017 O R D E R PER D.T. GARASIA , JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSES SEE AGAINST THE ORDER DATED 21.04.2014 OF THE COMMISSIONER OF INCOME TAX (APPEALS) [HEREINAFTER REFERRED TO AS THE CIT(A)] RELEVANT TO ASSESSMENT Y EAR 2011-12. 2. THE SHORT FACTS OF THE CASE ARE THAT ASSESSEE CO MPANY IS ENGAGED IN BUSINESS OF PUBLISHING MAGAZINES. DURING THE YEAR UNDER CONSIDERATION, THE ASSESSEE HAS DEBITED RS.66,56,137/- TO PROFIT & LOS S ACCOUNT ON ACCOUNT OF AGENCY COMMISSION. AFTER HEARING THE ASSESSEE, ASS ESSING OFFICER (HEREINAFTER REFERRED TO AS THE AO) WAS OF A VIEW THAT ASSESSEE HAS NOT DEDUCTED TAX AT SOURCE, THEREFORE, HE DISALLOWED THE COMMISSION. ITA NO.3212/M/2016 M/S. NEXT GEN PUBLISHING PRIVATE LIMITED, (FORMERLY NEXT GEN PUBLISHING LIMITED) 2 3. MATTER CARRIED TO THE LD. CIT(A) AND THE LD. CIT (A) HAS PARTLY ALLOWED THE APPEAL. 4. DURING THE COURSE OF HEARING, THE LD. A.R. SUBMI TTED THAT THE ISSUE IN CONTROVERSY IS CLARIFIED BY THE CBDT CIRCULAR NO.05 /2016 DATED 29.02.2016 WHEREIN IT HAS BEEN CLARIFIED THAT NO TDS IS TO BE DEDUCTED IN RESPECT OF COMMISSION TO ADVERTISING AGENCY/MEDIA COMPANY. 5. THE LD. D.R. SUBMITTED THAT THE ASSESSEE DID NOT REMAIN PRESENT BEFORE THE LD. CIT(A), THEREFORE THIS ISSUE MAY BE RESTORE D TO LD. CIT(A). 6. THE LD. A.R. HAS NO OBJECTION IF THE MATTER IS R ESTORED TO LD. CIT(A). 7. HAVING HEARD BOTH THE PARTIES, WE FIND THAT ASSE SSEE DID NOT REMAIN PRESENT BEFORE THE LD. CIT(A). LD. A.R. HAS BROUGH T OUR ATTENTION TO CBDT CIRCULAR NO.05/2016 DATED 29.02.2016 AND PLEADED WH ETHER THE TDS PAYMENT IS APPLICABLE ON PAYMENTS BY TELEVISION CHANNELS AN D PUBLISHING HOUSES TO ADVERTISEMENT COMPANIES FOR PROCURING OR CANVASSING FOR ADVERTISEMENTS. WE FIND THAT CBDT CIRCULAR NO.05/2016 HAS CLARIFIED TH E POSITION. SINCE THE ASSESSEE DID NOT REMAIN PRESENT BEFORE THE LD. CIT( A), WE DEEM IT FIT TO RESTORE THE MATTER BACK TO THE LD. CIT(A) AND THE LD. CIT(A ) IS ALSO DIRECTED TO DECIDE THE MATTER AFRESH CONSIDERING THE CBDT CIRCULAR NO. 05/2016 DATED 29.02.2016. THE LD. CIT(A) AFTER GIVING THE REASON ABLE OPPORTUNITY OF HEARING TO THE PARTIES. 8. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 26.07.2017. SD/- SD/- (RAJESH KUMAR) (D.T. GARASIA) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATED: 26.07.2017. * KISHORE, SR. P.S. ITA NO.3212/M/2016 M/S. NEXT GEN PUBLISHING PRIVATE LIMITED, (FORMERLY NEXT GEN PUBLISHING LIMITED) 3 COPY TO: THE APPELLANT THE RESPONDENT THE CIT, CONCERNED, MUMBAI THE CIT (A) CONCERNED, MUMBAI THE DR CONCERNED BENCH //TRUE COPY// [ BY ORD ER DY/ASSTT. REGISTRAR, ITAT, MUMBAI.