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2013 (10) TMI 376 - ALLAHABAD HIGH COURTTDS u/s 194C - Nature of the contact - sales of goods or works contract - Contractor undertakes to supply elevators, furnishing material, fire fighting and fire detection system, air conditioning, etc. during the execution of contract of construction - Circular No. 894 dated 08.03.1994 – Deduction not allowed u/s 40(a)(ia) of the Income Tax Act – Held that:- Copies of the bills were produced before the Assessing Officer, during the assessment proceedings and the same were also placed before the CIT(A). The bills proved that the payments was pertaining to the supply of goods. The case of the assessee is covered by the Circular No. 894 dated 08.03.1994, issued by the CBDT - Further, payment is duly reflected in the ledger account under the head "material purchased" and the same was part of the sums aggregating payment, which was appearing distinctly in the Profit & Loss Account also. When it is so, then the purchase of the goods/equipments as per the Circular (supra), the provisions of Section 194(C) is not attracted and the case of the assessee is covered by the Circular issued by the CBDT – Decided against the Revenue.
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