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2018 (6) TMI 1309 - ITAT BANGALORETDS u/s 194C - liability to deduct tax at source on the payments made to developers/contractors - Held that:- CIT(A) on perusal of the clauses of the agreement has arrived at the conclusion that the payments for the purchase of the sites was calculated on sq. ft. area of the property and the amount was paid for the purchases of completed property and not for development work carried out. CIT(A) found that the agreements were only for purchase of sites and does not involve any ‘works contract’. The aforesaid conclusion/finding of the CIT(A) cannot be faulted and the same is a correct reading of the scope of the agreements; which has to be treated as a whole and not in piece meal manner. The mere fact that the contractor/developer were required to layout roads and undertake other activities before the delivery of the completed sites cannot be either determinative of the facts or need to mean that the agreements entered into by the assessee society is a composite contract and amounts to a works contract. The case of the assessee is squarely covered by the decisions in the case of Karnataka State Judicial Department Employees House Building Cooperative Society Ltd.[2010 (3) TMI 1211 - KARNATAKA HIGH COURT] - Decided against revenue
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