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2014 (5) TMI 146 - KARNATAKA HIGH COURTTDS u/s 194C - Business of providing communication facilities – Transaction constitutes works contract or not u/s 194C of the Act - Payment made for obtaining SIM card & scratch card – Held that:- The word “work” as occur u/s 194C(1) has been explained to include manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from such customer – Relying upon CIT-XVII, Delhi –vs- Silver Oak Laboratories P. Ltd. [2010 (8) TMI 839 - SUPREME COURT] - the assessees did not supply any material whatsoever to the manufacturer/supplier for the supply of SIM/scratch cards as per their requirement or specification, thus, the transaction cannot be treated as a contract for carrying out works within the meaning of the word “work” used u/s 194(1) of the Act, before its amendment. Even if the first part of the amendment i.e., sub-clause(e) of Clause(iv) of Section 194C is applied, the case of the assessees would not be covered by the clause since the assessees did not supply any material to the manufacturers - placing of orders by the assessees to the manufacturers/suppliers to supply SIM/scratch cards as per their requirements cannot be treated as contract for carrying out works within the meaning u/s 194C(1) of the Act as it existed prior to its amendment – Decided against Revenue.
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