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2015 (6) TMI 8 - HC - Income TaxNon deduction of TDS - Payments made for execution of contract work - whether transaction between the assessee and M/s. Nicolas Piramal India Ltd., is not a sale transaction but it's a contract manufacturing attracting provisions of section 194C ? - Held that:- In the present case, admittedly no raw material was supplied by the assessee to the manufacturer and if the 'know how' was given to the manufacturer, it was not on payment of any licence fees or royalty. As such, on facts it is clear that even the 'know how', if termed as a 'material', was not purchased by the manufacturer from the assessee. A case similar to the one in hand came up in the case of CIT v. Glenmark Pharmaceuticals Ltd. reported in [2010 (3) TMI 289 - BOMBAY HIGH COURT] wherein held that in a case where no raw material is supplied by the assessee to the manufacturer, it could not be treated to be 'work' within the definition provided in the Explanation (iv) (e) of Section 194C of the Act and has thus answered the similar question, as raised in this case, in favour of the assessee and against the Revenue.
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