TIMES VPL LIMITED Vs. COMMISSIONR OF INCOME TAX

JUDGEMENT

(1.) Sri M.V.Seshachala, learned senior counsel with Mr.Aravind V.Chavan, learned counsel for the assessee. Sri Y.V.Raviraj, learned counsel for the Revenue.

(2.) This appeal under Section 260-A of the Income Tax Act, 1961 (hereinafter referred to as the 'Act' for short) has been filed by the assessee in which an additional substantial question of law was framed today, which reads as under: "Whether that Commissioner as well as Tribunal, in the absence of finding that contract in question is a contract for work, erred in law, in holding that Section 194C applies to fact situation of the case?"

(3.) The facts giving rise to filing of this appeal briefly stated are that, the assessee is a Company registered under the provisions of the Companies Act, 1956. The assessee is engaged in the business of printing and publishing newspapers. The assessee had entered into an agreement for bulk sale of advertising space dated 17.01.2007 with Bennett, Coleman and Co.Ltd. (hereinafter referred to as 'BCCL' for short), the ultimate holding company of the assessee, for purchase of bulk advertisement space in the daily newspaper 'The Times of India' in Kannada language on a principal-to-principal (P2P) basis by transfer of the rights therein. The assessee had incurred an expenditure of Rs.74,79,452/- for purchase of advertisement space during the year 2006-07. The assessee on 30.10.2007 filed its return of income for the assessment year 2007-08 declaring the total income as 'nil'.