K.G. Bansal, Accountant Member. - These cross appeals of the assessee and the revenue have been argued in a consolidated manner by the ld. counsel for the assessee and the ld. CIT, DR. Therefore, a common order is passed.

1.1 It may be mentioned here that an interim order regarding stay of demand for both these years was passed on 24-9-2010. This order comes to an end with the passing of final order in the cross appeals.

ITA No. 4924(Delhi)/2009-assessment year 2005-06- Appeal of the assessee

2. Ground Nos. 1 and 1.1 are against disallowance of a sum of Rs. 6,38,64,018 under section 40(a)(ia) of the Income-tax Act, 1961 ("the Act"), on account of non-deduction of tax at source on the payments made by the assessee to the franchisees on the ground that tax thereon has not been deducted at source under section 194C of the Act. It is mentioned that the ld. CIT (Appeals) erred in holding the joint venture agreement between the assessee and the franchisees as a service agreement.

2.1 Before us, the ld. counsel for the assessee submitted that the assessee had about 150 franchisees with whom it was sharing tuition fees received from the students. For this purpose, a separate account was m