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2010 (11) TMI 459 - PUNJAB AND HARYANA HIGH COURTAssessee in default - TDS u/s 194C - circular no. 681 dated 8.3.94 - the work of preparation and supply of I-cards by HARTON is covered within the meaning of section 194C, as the case of preparation and supply of I-cards is a consolidated case of expenses on labour and raw material which has gone into production of I-cards required to be supplied by HARTON to the assessee - It is clearly mentioned in sub-clause (b) of clause (vi) of para 7 that where the contractor undertakes to supply any article or thing fabricated according to the specifications given by the Govt. or any other specified person and the property in such article or thing passes to the Govt. or such person only after such article or thing is delivered, the contract will be a contract for sale and outside the purview of section 194C of the Act - assessee acted bona fide in this case on the basis of the said belief and did not deduct tax at source - Still further the default, if any, was only of a technical nature and in the peculiar facts of the case, wherein the two Departments of the Government were involved, the action against the assessee was not required - Decided in the favour of assessee
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