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2012 (5) TMI 620 - AT - Income TaxTDS u/s 194C - non deduction of tds - Held that:- For applying the provisions of section 194C(1) the contract should be between the contractor and the parties as per the list given from (a) to (j) of section 194C (1) of the IT Act as per the provisions applicable to the assessment year under appeal in which sub-clause(k) being the individual do not find mention. Thus, in the assessment year under appeal, the contract between the contractor and individual would not cast any obligation on the individual to deduct TDS on the payment made to the contractor. Since in this case, payment is made by the assessee to M/s. Devshree Network Pvt. Ltd., for providing cable transmission, therefore, no other person is involved in the transaction/oral contract. Thus, the assessee did not act as a sub-contractor in this case. Since the assessee has not acted as a contractor and no payment is made to the sub-contractor, therefore, the findings of the authorities below are based on wrong premise and assumption of certain facts which are not relevant to the matter in issue. Provisions of section 194C(1) and (2) of the IT Act would not apply to the case of the assessee. Since the expenditure has been actually paid and nothing remained payable as at the end of the A.Y. in the form of liability, therefore, provisions of section 40(a)(ia) are not applicable.
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