Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (10) TMI 530 - AT - Income TaxAddition u/s 40(a)(ia) - obliged to deduct tax at source on the payments made to sub-contractors as per provisions of section 194C - CIT-A treating the impugned payments as reimbursement - nature of payment - Held that:- No justification to dislodge the findings reached by the ld. CIT(A) in the impugned order. It is not in dispute that both the parties to whom the impugned payment was made by assessee-AOP were the Joint Venture Members of the assessee-AOP. It is notable that as per clause 9.1 of the Joint Venture Agreement entered between the assessee-AOP and the Northern Railway, both GC and RITES have incurred the costs on manpower in the project of Northern Railway, which was reimbursable to them as per above contract entered with the main contractee to execute the project. The ld. CIT(A) has properly examined the details of employees assigned and cost incurred by both the Joint-Venture Members, i.e., GC and RITES and has clearly found that the amount actually incurred by them towards the manpower cost, was reimbursed to them by the assessee-AOP. Therefore, the ld. CIT(A) has rightly observed that it was not any payment made under any sub-contract, as imagined by the AO without any evidence on record. There is no good reason or evidence on record to hold that the expenditure incurred by the Assessee- AOP in the present fact situation would partake the character of income or profit, liable to tax deduction at source by the payer - Decided against revenue
|