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The only issue in these two appeals of Revenue is as regards to the order of CIT(A) in deleting the disallowance made by AO on account of short deduction of TDS under section 194C instead of actual deduction to be made under section 194J of the Act in respect Carriage Fees/ Channel Placement Fees’. Held that—There is no dispute that the payment in question was made by the assessee to the cable operators/ MSOs for placing the TV channels in the prime band in order to enhance the viewership and better advertisement revenue. what the assessee has transacted for with the licensor or company certainly includes within its ambit broadcasting and telecasting facility. The essence of the contract is to obtain broadcasting and telecasting of TV channels and thereafter its distribution amongst ultimate customers through the cable network of the assessee. What the assessee subscriber is looking for is to obtain the telecast signals from the licensor, which is enough, to deduce that the impugned contract involves broadcasting and telecasting of TV signals. Moreover, the licensor or the company, as is evident from the specimen agreement on record, in the business of distribution of satellite based TV channels and has exclusive rights to market and distribute said services in India, the service that is referred to in the agreement is the broadcasting and telecasting of TV signals. Tribunal was correct in holding that the assessee was required to deduct tax at source in terms of s. 194C. As the facts are exactly identical in both the years and nature of payment is same and the facts in AY 2012-13 in ITA No. 3690/Mum/2017 are also exactly identical, respectfully following the Tribunal’s decision in assessee’s own case and taking a consistent view, we confirm the order of CIT(A) deleting the disallowance.

Shanti Prime Publication Pvt. Ltd.

Section 9, 194C, 194J of Income Tax Act, 1961—Short deduction of TDS—The only issue in these two appeals of Revenue is as regards to the order of CIT(A) in deleting the disallowance made by AO on account of short deduction of TDS under section 194C instead of actual deduction to be made under section 194J of the Act in respect Carriage Fees/ Channel Placement Fees’.

Held that—There is no dispute that the payment in question was made by the assessee to the cable operators/ MSOs for placing the TV channels in the prime band in order to enhance the viewership and better advertisement revenue. what the assessee has transacted for with the licensor or company certainly includes within its ambit broadcasting and telecasting facility. The essence of the contract is to obtain broadcasting and telecasting of TV channels and thereafter its distribution amongst ultimate customers through the cable network of the assessee.

What the assessee subscriber is looking for is to obtain the telecast signals from the licensor, which is enough, to deduce that the impugned contract involves broadcasting and telecasting of TV signals. Moreover, the licensor or the company, as is evident from the specimen agreement on record, in the business of distribution of satellite based TV channels and has exclusive rights to market and distribute said services in India, the service that is referred to in the agreement is the broadcasting and telecasting of TV signals. Tribunal was correct in holding that the assessee was required to deduct tax at source in terms of s. 194C.

As the facts are exactly identical in both the years and nature of payment is same and the facts in AY 2012-13 in ITA No. 3690/Mum/2017 are also exactly identical, respectfully following the Tribunal’s decision in assessee’s own case and taking a consistent view, we confirm the order of CIT(A) deleting the disallowance.[THE ASST. COMMISSIONER OF INCOME TAX VERSUS BUSINESS BROADCAST NEWS P. LTD.] [2018] [ITCD Online][138] [ITAT MUMBAI]