Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2012 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (4) TMI 230 - AT - Income TaxDisallowance made u/s.40(a)(ia) for the failure to deduct TDS u/s.194C – assessee undertakes contract work of transportation of oils through oil tankers to various locations of BPCL - sub-contract – Held that:- the contract for carrying out the work was between the BPCL and the appellant the appellant alone had risk and responsibility for carrying out the contract work as per the agreement -there is no material on record to suggest that there was any contract or sub-contract whether written or oral with the outside tank owners and the appellant, whereby the risk and responsibility which is associated with a contract has also been passed on to these outside parties - once the CIT (Appeals) has accepted the fact that the outside tank owners do not had any responsibility or liability towards the principal, then it cannot be held that these outside parties were privity to the contract - thus the payment made to the outside parties do not come or fall within the purview of section 194C, as the "carrying out any work - the appellant was not liable to deduct TDS u/s. 194C(1) for payments made to the outside parties and consequently the disallowance made u/s.40(a)(ia) by the authorities below are deleted. The appellant thus gets relief of ₹ 56,03,210/-.
|