TMI Blog2016 (9) TMI 1245X X X X Extracts X X X X X X X X Extracts X X X X ..... ion. AO himself is not sure and forming the opinion on his own surmise and conjecture. Assessee has produced the muster roll. In this regard, Ld. DR failed to bring any defect / information from the muster roll which suggested that the labour charges paid by assessee are subject to TDS. Since no cogent material has been brought on record, in our considered opinion, AO was not justified in invoking the provision of Sec. 194C r.w.s. 40(a)(ia) of the Act. - Decided in favour of assessee - ITA No. 1252/Kol/2013 - - - Dated:- 7-9-2016 - SHRI WASEEM AHMED, ACCOUNTANT MEMBER AND SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER By Appellant Shri Rajat Kumar Kureel, JCIT-DR By Respondent Shri Somnath Ghosh Advocate O R D E R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deliberate delay. It must be grasped that judiciary is respected not on account of its power to legalise injustice on technical grounds but because it is capable of removing injustice and is expected to do so. Considering the judgment (Supra) we feel that in litigations to which Government is a party there is yet another aspect which, perhaps, cannot be ignored, if appeals brought by Government are lost for such defaults, no person is individually affected but what, in the ultimate analysis, suffers is public interest. The decisions of Government are collective and institutional decisions and do not share the characteristics of decisions of private individuals. 4. In the instant case as the Government is Appellant as submitt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... who were known as labour-sardar. It was submitted that there is no contract with the assessee and all the labour charges are directly paid to the labourers. Their role was nothing but to act as conduit between the assessee and the labourers to see whether every person works under assessee has got the payment. It was because there were many labourers and it was difficult for assessee to keep a vigil on all the labourers. However, AO disregarded the claim of assessee by observing that from the appearance, dress, behavior and confidence of all these persons are the labour-sardar and now they are denying the fact. Accordingly, AO disallowed the same and added to the total income of assessee. 7. Aggrieved, assessee preferred an appeal before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to bring anything on record that the labour charges were paid in pursuance of contract either in writing or the oral with the labour sardar. The AO has held that the assessee has not complied the provision of Sec. 194C r.w.s. 40(a)(ia) of the Act on the presumption and surmise. There is no evidence that the payments have been made to the contractors. We do not find any merit in the arguments placed by Ld. DR in this connection. The AO has given the clear finding in his order which is as follows : In my opinion, all these labourers who are treated as Labour Sardars are enjoying some privileged position in the eyes of assessee because the assessee collects other labourers through them, make payments to the other labourers in their pre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as been made to a contractor for the year exceeding ₹ 20,000/-. Similarly the jurisdictional ITAT, Kolkata in the case of Samanwaya Vs. ACIT 34 SOT 332 has held as under : Business expenditure-Disallowance under s. 40(a)(ia)-Need for TDS under s. 194C relating to payments made for disbursement of labour charges to labour Sardars-Assessee had specifically stated before the lower authorities that there is no contract between the assessee and the labour Sardars-Revenue authorities could not controvert the submission of the assessee in this respect-Even before the Tribunal, the Department could not bring out any evidence by producing cogent material in respect of any contract between the assessee and the labour Sardars to contrad ..... X X X X Extracts X X X X X X X X Extracts X X X X
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