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2013 (12) TMI 65 - AT - Income TaxCharges for printing of the company's product catalogue – Held that:- Following CIT Vs. DCAO, Marfed Khanna Branch [2008 (2) TMI 260 - PUNJAB AND HARYANA HIGH COURT] - Payments to the contractors for the purchase of printed packing material for the purpose of packing of its finished products is a contract of sale and not work contract - Supply of all kinds of printed material would not amount to works - The expenditure incurred by the assessee for the purpose of printing product catalogue and telephone index, in our view, is in the nature of contract for sale/purchase and not in the nature of 'works contract'. Therefore, the impugned expenditure does not attract the provision of section 194C – Decided in favour of assessee. Payment to Hotel – Held that:- According to the CBDT's circular no. 715 dated 08.08.1995 clarifying the position as regard the payments made to a hotel for hiring rooms u/s 194-I of the Act - for the purposes of section 194-I, payment made to hotels for hotel accommodation whether in the nature of lease or licence agreements are covered only if accommodation had been taken on 'regular basis' - In the case of the assessee - The payment made to hotel for booking room is not taken on regular basis and only as per rate contract – Decided in favour of Revenue.
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