TMI Blog2008 (11) TMI 21X X X X Extracts X X X X X X X X Extracts X X X X ..... by the assessee were not in the nature of payments under contract but had the character of wages, hence liability to deduct tax under Section 194C not arises - no substantial question of law arises - 1273-74/2008, 1280/2008 and 1284/2008 - - - Dated:- 17-11-2008 - Advocates who appeared in this case: For the Appellant : Ms Rashmi Chopra For the Respondent : Mr H Raghvendra Rao CORAM :- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat it was for the deductor to prove that the deductee had declared the payments received from the deductor as income of the deductee in its income tax returns for the respective years and it was for the deductor to furnish evidence to that effect. According to the Assessing Officer, such evidence had not been produced before him and, therefore, he held that the assessee/deductor was an assessee i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssioner of Income Tax (Appeals) and confirmed by the Tribunal, we cannot find fault with the conclusion of the Tribunal that the assessee cannot be regarded as one under default in terms of Section 201(1) of the said Act. The Tribunal also placed reliance on the decision of the Supreme Court in the case of Hindustan Coca Cola Beverage Pvt Ltd vs CIT: 293 ITR 226 in concluding that once the payees ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s paid directly to the labourers. Both the Commissioner of Income Tax (Appeals) and the Income Tax Appellate Tribunal have concluded on facts that the payments were not in the nature of payments under contract but had the character of wages. It is obvious that the liability to deduct tax under Section 194C of the said Act, only arises in case of contractual payments. Since the payments were made t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssioner of Income Tax (Appeals) in the respective financial years. The learned counsel appearing for the respondent/assessee also does not dispute the position as indicated by the respective orders passed by the Commissioner of Income Tax (Appeals). In the aforesaid circumstances, no substantial question of law arises for our consideration. The appeals are dismissed. BADAR DURREZ AHMED, J ..... X X X X Extracts X X X X X X X X Extracts X X X X
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