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2016 (4) TMI 1274 - AT - Income TaxTDS u/s 194C - whether there was an obligation on the part of respondent society to deduct tax at source in respect of amount paid by the respondent society to the developer viz. Lakshman? - Held that:- On perusal of the said agreement, it is clear that the payment were made as per the stage of completion of work contract but the contract is only for purchase of developed sites as evidenced by sale deeds. We find that identical clauses are found in the sale deeds executed by the developer in favour of members of society in this case also. The fact that the payments are made as per stage of completion of work, doesn’t have impact on the true nature of contract entered into. Respectfully following the decision of the Coordinate Bench in the case of Kautilya House Bldg [2016 (4) TMI 1269 - ITAT BANGALORE]. Co-operative Society Ltd., to which one of us i.e Hon’ble Accountant Member is author of the order, we hold that the respondent society is not under obligation to deduct tax at source on the payment made to the developer. Accordingly, we do not find any reason to interfere with the orders of the CIT(A), hence the appeal filed by the Revenue is dismissed.
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