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2013 (9) TMI 1081 - AT - Income TaxTreatment given at the time the contract was entered into - the project was turnkey project.- Held that:- We find that the contract is restricted only for providing the designing and technical specifications of the plant as well as supervising of the erection of the plant. Addendum is a continuation of the original agreement itself and hence, it relate back to the original contract. In our opinion, there is no merit in the argument taken by the assessee that the agreement with M/s. Biopharmax is in the nature of the works contract for setting up the Insulin Manufacturing Unit when in fact as rightly held by the DCIT (TDS) that the agreement is for providing technical services. Interest charged by the DCIT (TDS) u/s. 201(1a) - Held that:- Demand u/s. 201(1) cannot be raised in view of the fact that the amount in question has been offered for tax by the payee but in respect of the interest it is held that the assessee will be liable to pay interest up to the completion of the assessment for the A.Y. 2008-09 in the case of deductee. The Ld. CIT(A) directed the Assessing Officer to delete the addition u/s. 201(1) of the Income-tax Act and compute interest u/s. 201(1A) of the Income-tax Act from the date of payment/credit till the date of completion of the assessment in the case of deductee for the A.Y. 2008-09. We find that in the case of Hindustan Coca Cola Beverage (P) Ltd. (2007 (8) TMI 12 - SUPREME COURT OF INDIA ) the Hon'ble Supreme Court has held that even if no demand can be raised if the deductee has deposited the tax but at the same time the assessee will be liable for the interest.
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