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2013 (4) TMI 635 - HC - Income TaxTDS u/s 194C - assessee in default u/s 201(1) - separate contracts or composite contract - three separate contracts viz., one for Supply of Indian sourced equipments and materials; second for labour-cum-erection; and third for construction of refinery. As it was emphasized by the Department that this amounts to only one contract which was signed on 7th November 1994, deduction of amount equal to 2% of such sum as Income-tax on income comprising therein was a must whenever the person responsible for paying any sum to any contractor for carrying out any work in pursuance to a contract.Department issued a SCN as why the assessee-company should not be treated as a defaulter for recovery of dues towards TDS amount. Held that - appellant had originally entered into a single agreement dated 7.11.1994 for construction of refinery plant. The assessee had thereafter, made amendments to the original agreement and created three separate contracts for supply of (i) Indian sourced equipment and material, (ii) labour-cum-erection and (iii) construction. These amendments were made later on i.e. on 25.3.1997. In the subsequent agreements, the original agreement was mentioned at various places. - the covenants of the agreement led both the authorities to conclude that essentially it was only the main contract for construction of refinery and not three separate contracts. There is no reason to hold otherwise than what has been concluded by these authorities consecutively. - Decided against the assessee.
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