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2014 (7) TMI 597 - AT - Income TaxOrder u/s 201(1) and 201(1A) of the Act - Short deduction of TDS on earth work and labour payments – Held that:- Prior to the survey operations under S.133A with respect to the TDS deductions that took place on 24.3.2008 - relevant assessment orders placed on record do indicate that AO examined the payments in detail and accepted the additional income offered on these payments - Had the payments been made to sub-contractors, the AO certainly would have invoked provisions of S.40a(ia) and not S.37(1) in the scrutiny proceedings - the payments to labour for earth work were directly made by the assessee and there are no sub-contractors for the labour, and books are maintained to monitor the man hours put in by the labour, it is neither fair nor proper for the Revenue authorities to arrive at a contrary conclusion by imputing the involvement of sub-contractors and thereby invoking the provisions of S.201(1) and S.201(1A), so as to raise demands on account of non-compliance with the TDS provisions in relation to payments – thus, the orders of the CIT(A) is set aside and the AO is directed to delete the demands raised u/s 201(1) and S.201(1A) in relation to payments made by the assessee towards labour/earth works – Decided in favour of Assessee. CIT(A) observed that there is nothing on record to suggest that the transactions are genuine hire purchase transactions, upheld the view taken by the AO – the observation of the CIT(A) is contrary to the claim of the assessee as to the nature of the transactions, being of hire purchase transactions – thus, the matter is remitted back to the AO for re-consideration – Decided in favour of Assessee.
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