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9. Upon the assessee's appeal, the ld. CIT(A) elaborately referred to the submission of the assessee. He observed that the assessee company is engaged in business of providing Direct to Home (DTH) services in the brand name of Tata Sky' for which license is given by Ministry of Information & Broadcasting, Government of India. Thus, the assessee is a Service Provider. The provision of this service requires installation of set top box and dish antenna at the customer's premises, That the assessee has entered into agreement with distributors for sale/ distribution of set-top boxes. Further, the provision of DTH services is mainly by way of sale of prepaid vouchers, recharge vouchers etc. for Tata Sky Limited which also, the assessee has entered into agreements with 'distributors at various locations. That as per the agreements, STBs and RCVs are sold to distributors at a discounted price as agreed between the parties i.e. the authorized price/ invoice price. That the distributors/ dealers sell these items to customers/ subscribers of the assessee company at a price not exceeding the MRP mentioned for the product, there are various decisions on this issue of applicability of Section 194H to the discount allowed to distributors or dealers or franchisees.

(iv) There is no necessity of a formal contract of agency; it can be implied which could arise from the act of the parties or situations in which parties are put.

12. Thereafter, the ld. CIT(A) proceeded to apply the above test to the transaction under consideration. He observed that it is evident that when a distributor/dealer provides the DTH connection to a customer, he does so, on behalf of the assessee. This connection involves installation of set top box and dish antenna at the customer's premises. Thereafter, the Set-Top Box (STB) at the premises of the customer receives television signals directly through the dish antenna and such signals are viewed on the television by the customer. That it is obvious that the concerned distributor/dealer, by providing the DTH connection to the customer, creates a legal relationship between the assessee and the customer (i.e. the third-party). That similarly, when a recharge voucher (RCV) is sold by the distributor/dealer the customer to the customer becomes entitled to receive Tata Sky Limited services from the assessee to the extent of the value of the recharge voucher and again the third-party contractual relationship is created by this act of the distributor/dealer between the assessee and third-party i.e. the customer of the assessee. That at all times, whether it is the sale of STB or that of RCV by the distributor, the customer is always the customer of the assessee and not that of the distributor which would not be the case, had it been a transaction of sale of goods. That also, any further modification in the package or even the termination of the connection (by the assessee) is carried out through the concerned distributor/dealer. That such modification or termination cannot be carried out by the distributor/dealer on his own, without the approval/involvement of the assessee.

6.9 The job of the Installation Service Provider is to go to the premises of the subscriber, to install dish antenna and Set-Top Box. Thereafter, the Installation Service Provider has to connect the Set-top Box to the Television of the subscriber by making few basic wiring connections. This can be done by any sound person after reading the installation manual carefully. So far as the training given by the appellant is concerned, it is seen that basic training/ instructions are provided for a short period to make them understand the process of Installation so that they can apply the same at the place of the subscriber. Further, the payment per installation is not very high and it is a few hundred rupees. It may be noted that services from skilled and technically qualified persons cannot be obtained at such a meager amount considering that the work has to be carried out at the place of the subscriber. The work, as is evident, is repetitive in nature. I agree with the appellant that in respect of these services/works outsourced, it cannot be said that the ISPs have rendered any managerial, technical or consultancy services to the appellant within the meaning of Explanation 2 to Section 9(1)(vii) of the Act. These services involve carrying out of "work" within the meaning of section 1S4C of the Act. The appellant has therefore, correctly deducted tax at source under the said section and the provisions of section 194J are not applicable. I hold accordingly and the demands of tax u/s 201(1) raised by the AO are hereby deleted.

The relevant para has been reproduced as under;

"We observe that the work of installation of Set-Top Boxes and Antenna at the premises of the end-user is given as per the contract with Installation Service Providers (ISPs). The job of the Installation Service Provider is to go to the premises of the subscriber, to install Dish Antenna and Set-Top Box and connect them to the Television of the subscriber. The Installation Service Provider has to connect the Set-top Box to the Television by making few basic wiring connections. It does not require any special technical expertise or any technical degree and it can be done by any sound person on reading through the installation manual. Also, there is no specific qualification or recognized course required for installation Service Provider to become eligible for installation of Dish and Set^Top Box. They are given basic training/instructions for a short period to make them understand the process of Installation so that they can apply the same at the place of the subscriber. Accordingly, the CIT(A) was justified in holding that assessee was required to deduct tax u/s.194C of the Act. The CIT(A) has dealt with the issue threadbare and after relying on various judicial pronouncements Tata Sky Limited held that work of installation of Set-Top box amounts to 'works contract. The detailed finding so recorded by CIT(A) are as per material on record which has not been controverted by Id. DR by bringing any positive material. Accordingly, we do not find any reason to interfere in the order of CIT(A) holding that installation of Set-Top Box amounts to works contract and no technical expertise are required so as to make the assessee liable under the provisions of Section 194Jofthe IT Act."