1. Heard the learned counsel for the appellant.

2. Since common facts and law are involved in these appeals, therefore, they were heard together and are being disposed of by this common order.

3. For convenience, the facts of D.B. Income Tax Appeal No. 235 of 2011 are being taken as leading facts. The Assessing Officer, vide its order dated January 30, 2009, raised a demand of Rs. 1,70,881 along with interest thereon amounting to Rs. 44,776, on account of TDS on the amount paid as service tax. The matter relates to the financial year 2005-06. The assessee preferred an appeal, which was allowed by the Commissioner of Income-tax (Appeals)-III, Jaipur (for short "the appellate authority"), setting aside the aforesaid demand. Being aggrieved with the same, the Revenue preferred an appeal before the Income-tax Appellate Tribunal, Jaipur Bench "A", Jaipur, but the same was dismissed. Hence, the Revenue has preferred this appeal.

4. The submission of the learned counsel for the appellant is that the appellate authority and the Income-tax Appellate Tribunal, both, have committed an illegality in relying upon the Circular dated April 28, 2008, which was in respect of section 194-I of