TMI Blog2014 (5) TMI 146X X X X Extracts X X X X X X X X Extracts X X X X ..... he 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 am ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... template that payments for carrying out any work in pursuance of a contract, including the supply of SIM/scratch cards as per the assessee s specifications would attract the provision of Section 194C of the Act and consequently the order u/s.201(1) and u/s.201(1A) of the Act was justified? 2. These appeals are directed against the order passed by the Income Tax Appellate Tribunal (for short the Tribunal ) whereby the Tribunal refused to interfere with the order passed by the First Appellate Authority. The First Appellate Authority reversed the order passed by the Assessing Officer whereby it was held that the order to supply SIM/scratch cards along with printing of the assessees name and other particulars would amount to work sinc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1.11.2008 . The Supreme Court considered Section 194C of the Act before amendment/substitution and after the amendment/ substitution by the Finance (No.2) Act, 2009 and disposed of the SLP by the following order: On examining the terms and conditions and also on examination of the invoices, purchase orders as well as the challans indicating payment of excise duty, we are of the view that there is no material on record to indicate that the transaction in question is a contract for carrying out works . Hence, Section 194C of the Income Tax Act, 1961, [ Act for short] is not attracted. Our attention, in fact, is invited to the amendment in Section 194C of the Act vide Finance (No.2) Act, 2009, with effect from 1st October, 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ords, 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 said clause since the assessees did not supply any material to the manufacturers. However, we need not take recourse to the amendment. These appeals, in view of the aforesaid order of the Supreme Court, can be disposed of holding that placing of orders by the assessees, in these cases, 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 of sub-section(1) of Section 194C of the Act as it existed prior to its amendment. Hence, we answer both the substantial questions of law agains ..... X X X X Extracts X X X X X X X X Extracts X X X X
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