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The Tax Publishers Asstt. CIT v. Zoom Communication Ltd. [ITA No. 414/Del/2014, dt. 26-4-2016] : 2016 TaxPub(DT) 2215 (Del-Trib) Disallowance of expense due to non-deduction of TDS on camera attendants hired on adhoc basis. Interest on delayed payment of taxes whether penal or compensatory. *Facts:* Assessee in the business of providing content for broad casting and channels had hired camera attendants on temporary basis due to business needs. No TDS was done on the same as pattern could not be established in the hiring or in the payout. This was disallowed by the assessing officer/dropped by the Commissioner (Appeals) in appeals. Similarly assessee had paid delayed service tax which attracted interest, this was claimed in the return but disallowed by assessing officer but negated by the Commissioner (Appeals). On further appeal by the department: Held in favour of the assessee that the frequency of payout and since there was no pattern in hiring the temporary camera attendants no disallowance on account of TDS is warranted. The interest on delayed payment of service tax is compensatory and thus is not hit by the penalty clause disallowance of section 37(1) and is an allowable expenditure.

The Tax Publishers

Asstt. CIT v. Zoom Communication Ltd. [ITA No. 414/Del/2014, dt. 26-4-2016] : 2016 TaxPub(DT) 2215 (Del-Trib)

Disallowance of expense due to non-deduction of TDS on camera attendants hired on adhoc basis.

Interest on delayed payment of taxes whether penal or compensatory.

Facts:

Assessee in the business of providing content for broad casting and channels had hired camera attendants on temporary basis due to business needs. No TDS was done on the same as pattern could not be established in the hiring or in the payout. This was disallowed by the assessing officer/dropped by the Commissioner (Appeals) in appeals. Similarly assessee had paid delayed service tax which attracted interest, this was claimed in the return but disallowed by assessing officer but negated by the Commissioner (Appeals). On further appeal by the department:

Held in favour of the assessee that the frequency of payout and since there was no pattern in hiring the temporary camera attendants no disallowance on account of TDS is warranted. The interest on delayed payment of service tax is compensatory and thus is not hit by the penalty clause disallowance of section 37(1) and is an allowable expenditure.