Payments made by 'Yash Raj Films' for making copies of film negative weren't technical services

Facts:

a) Assessee-company (i.e. Yash Raj Films) made payments to Adlab for making copies of prints for the films.

b) Assessing Officer (AO) noticed that the assessee had not made deducted TDS as per the provision of section 194J in respect of payments made to Adlabs Ltd.

c) Assessee's stand was that the work performed by Ablab did not involve any technical or professional services, therefore payments were covered under section 194C.

d) On appeal, CIT(A) granted relief to the assessee. Aggrieved by the order of CIT, revenue filed appeal before Tribunal.

Tribunal held in favour of assessee as under:

1) The contract was made for taking out multiple prints of the final negative which was given to Adlab. Such jobs or work contracts of making several prints of the same final negative did not involve any technical or professional services.

2) In view of above facts, CIT (A) was justified in holding that assessee has rightly deducted TDS on the payments made to Adlabs, for supplying copies of final negative as per the provisions of section 194C. - [2016] 73 taxmann.com 73 (Mumbai - Trib.)