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2015 (2) TMI 400 - AT - Income TaxNon deduction of TDS u/s 194 C - violation of sec. 40 a (ia) - assessee hired subcontractors to complete the work - Held that:- From the facts mentioned it clearly emerges that by main contract with Principal Next Retail India assessee was barred by hiring any subcontractor. We are unable to subscribe to the AOs view that as the labourers were orally employed or the salaries were disbursed through senior workman constitute adverse facts to lead to a conclusion that assessee hired subcontractors to complete the work. Similarly no adverse inference can be derived from auditors remark as it is only statement of fact about wages and in any case auditors vague remarks cannot be construed as a conclusive statement. This is the job of AO to peruse the facts, circumstances and material in entirety and not to resort to piece meal observations. In view of the above, we find no infirmity in the order of CIT(A) holding that assessee was not liable to deduct TDS u/s 194 C, his order on merits is upheld. Since we hold that there is no liability u/s 194C there is no violation of sec. 40 a (ia), there is no need to adjudicate about the Merylin shipping issue [2012 (4) TMI 290 - ITAT VISAKHAPATNAM]. - Decided against the revenue.
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