Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2015 (2) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (2) TMI 677 - HC - Income TaxTransmission charges - TDS under section 194C and section 194J - whether it is in the nature of sale or contract in between the respondent-assessee and the Gas Authority of India Ltd ("GAIL") - Held that:- Tribunal committed no error in coming to the conclusion that the case was not covered under section 194C/194J of the Act. It may be that the transportation component of gas was paid separately by the assessee to GAIL. Here also the transportation charges did not depend on the consumption of quantity of gas but was of fixed monthly charges to be borne by the assessee as part of the agreement between the parties. The ownership of the gas vested in GAIL till it was transported and delivered to the assessee's premises at the outlet of the gas metering station. The pipeline was laid down by GAIL and was permitted to be utilised for further onward transportation of gas to other consumers. The circular of the Central Board of Direct Taxes, which has been referred by the Income-tax Appellate Tribunal, bearing No. 13 of 2006, dated December 13, 2006 (supra), in our view, also clarifies the situation envisaged in the present case and considering the circular as well as the facts available on record, we have no hesitation in holding that the agreement of supply of gas by GAIL to the assessee, in the instant case, is a simpliciter transaction of sale and purchase and cannot be termed to be an agreement for work/providing of technical services. The ITAT has rightly come to the conclusion and, in our view, it is based on appreciation of evidence and facts and no question much less substantial question of law can be said to emerge out of the said order of the Income- tax Appellate Tribunal - Decided in favour of assessee.
|