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2013 (10) TMI 595 - ITAT DELHITDS u/s 194J or 194C - disallowance u/s 40(1)(ia) - Specialized works involving computer job work, marking of landmarks & door to door collection of information - Works contract or professional / technical services services - Held that:- The bare perusal of section 194C would reveal that in case payment is being made with regard to a contract entered for the purpose of dealing with and satisfying the need for housing accommodation for the purpose of planning, development or improvement of cities, towns and villages then such payment would come within the ambit of section 194C. On the other hand, explanation appended to section 194J suggest that professional service would be constituted, all those services which are rendered by a person in the course of carrying on legal, medical, engineering or architectural profession etc. The jobs availed by the assessee from the persons did not fall within the ambit of this explanation, rather they are ancillary jobs connected with main performed by the assessee, which falls within the ambit of clause F & I of Explanation-1 to section 194C - Decided against Revenue. In case there is a difference of opinion regarding rate of deduction under various provisions of Chapter-XVII-B, there are separate TDS provisions under the Income Tax Act and matter can be separately examined by ITO(TDS). But that legal debate cannot be made a basis for applying section 40(a)(ia). Section 40(a)(ia) has no role to play in such circumstances when the assessee under bonafide belief complied the provisions of Chapter-XVII-B & deposited the tax in time. - Decided against the revenue.
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