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2012 (5) TMI 5 - AT - Income TaxTDS u/s 194C - Disallowance of payments of stevedoring expenses to Calcutta Dock Labour Board - The contention of the assessee, however, is that the provisions of Section 194 C are not applicable on the facts of this case, and, therefore, disallowance under section 40(a)(ia) cannot be made, and it is this contention which has been accepted by the CIT(A), on the ground that "the Dock Labour Board is operating as an agent of stevedores, who are actual employers" and that "there is no contractual relationship between the appellant and Calcutta Dock labour Board" - Held that: there is no dispute that the assessee has paid the amounts for "supply of labour" for carrying out work - CDLB is an agent of the stevedores like the assessee in the sense that the labour is recruited by the assessee through CDLB, but then this fact does not affect the nature of payment by the assessee to the CDLB which is admittedly in the nature of payment for supply of labour - There is no cause and effect relationship between workers assigned by the CDLB having employer workman relationship with the assessee, and the payments being made by the assessee to CDLB being not in the nature of 'payment for supply of labour' - Appeal is allowed by way of remand to CIT(A)
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