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2011 (9) TMI 632 - AT - Income TaxExpenses relating to BPO charges - Truck Finance Business - services of three companies for providing office space and other infrastructure - Held That:- 40(a)(ia) not applicable to A/Y 04-05 further ledger copies revealed that payments have beern made by assessee and expenditure has not been booked mainly by journal entries.- BPO charges allowed TDS - Access to Data base subject to 194C - Held That:- In view of Associated Cement Co. Ltd v. CIT (1993 - TMI - 5403 - SUPREME COURT)for a 'work' there has to be 'supply' by the contracting party. But in the given case no supply of information (service/labour) is involved. The employees of the assessee-company are allowed 'access' to database who themselves search the requisite information if they so require. Further Circular' No. 681, dated March 8, 1994 is bad in law TDS - Payment to Transport Co. for using Manpower - 194C or 194H - Held That:- We are unable to find out that the relation of Principal and agent exists between the parties.CIT(A) has correctly treated this contract for supply of labour as 'works contract' and upheld the deduction of tax @ 2%.
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