Moon Network Private Limited Vs ITO (ITAT Agra)
Non-Compliance with Earlier ITAT Directions – Matter Remanded Again to AO for Verification of Deductees
Assessee, a private TV network, had deducted TDS @2% u/s 194C on payments to broadcasting channels. AO held that tax should have been deducted @10% u/s 194J, treating it as payment for “technical services”, & passed order u/s 201(1)/201(1A) treating Assessee as assessee-in-default for short-deduction.
Assessee contended that recipients had already paid taxes on such income & filed Form 26A certificates for some parties, seeking relief under proviso to section 201(1) read with section 191. Earlier, in first round (ITAT order dated 26.07.2017), Tribunal had directed AO to verify whether remaining deductees had declared the income & paid tax.
However, in the second round, AO again passed ex-parte order ignoring Tribunal’s directions & treated the Assessee in default for all deductees, including those for whom certificates were filed. CIT(A) also failed to ensure compliance.
ITAT observed that both AO & CIT(A) had violated binding ITAT directions & ignored verification requirement. Accordingly, Tribunal set aside the impugned order & remitted the matter back to AO with strict instructions to follow earlier ITAT order, obtain necessary details from deductees, & decide afresh as per law.
