Accord Advertising (P.) Ltd. v. ITO (2018) 171 ITD 111 (Mum) (Trib.)

S. 194I : Deduction at source – Rent –Hoarding- If a person has taken a particular space on rent and thereafter sub-lets same, fully or in part, for putting-up a hoarding, such payments would be liable for tax deduction at source under S. 194I and not under S. 194C of the Act .[ S.194C, 201(1))201(IA) ]

Tribunal held that as per CBDT, Circular 715 dt. 8-8-1995(1995) 215 ITR 12 (St), a contract for putting up a hoarding is in nature of advertising contract and provisions of S. 194C would be applicable; however, if a person has taken a particular space on rent and thereafter sub-lets same, fully or in part, for putting-up a hoarding, such payments would be liable for tax deduction at source under S.194I and not under  S. 194C of the Act. The matter was remanded to the AO to decide according to law .( AY.2003 -04 , 2005 -06)