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2014 (8) TMI 633 - HC - Income TaxLegal obligation of Municipal Corporation to deduct surcharge on TDS - TDS was deducted u/s 194C – revenue felt that the Municipal Corporation in addition to tax deducted at source at the rate of 2 per cent., should also have further deducted surcharge on the tax at 12 per cent. at source itself - surcharge came to be introduced by the Finance (No. 2) Act, 1991 - Held that:- Section 194C (1) and (2) of the Act as existed at the relevant point of time had cast no obligation on the assessee-Municipal Corporation to deduct any surcharge during the relevant years when payments were made to the contractors – Relying upon Sriram Refregeration Industries v. ITO [2014 (4) TMI 277 - ANDHRA PRADESH HIGH COURT] - section 201(1A) of the Act has no application in the case of short deduction - when we say "even assuming" it does not mean that at the relevant point of time there was any obligation on the Municipal Corporation to deduct surcharge as the very obligation to collect surcharge was not in existence and the same came to be introduced only with effect from April 1, 1991, by the Finance (No. 2) Act, 1991 – the order of the Tribunal is upheld – Decided against revenue.
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