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2015 (7) TMI 733 - AT - Income TaxDisallowance u/s 40(a)(ia) - assessee made the payment for labour charges without deduction of tax at source u/s 194C - assessee in default - Held that:- The 14 persons supplied the labourers to the assessee issued bills/vouchers in respect of labourers supplied on the basis of man-days and charged separately for skilled labour supply and for un-skilled labour supply. Against those bills, payment is made to those 14 persons from time to time and some payment is outstanding which is shown in the balance-sheet of the assessee. From these facts and the bills/vouchers issued by the 14 persons, it is evident that it is a case of contract for supply of labourer and therefore, section 194C was squarely applicable. Since the assessee failed to deduct the tax at source, in our opinion, the Assessing Officer rightly disallowed the labour charges paid to the labour contractors by invoking the provisions of Section 40(a)(ia). Accordingly, the assessee’s appeal is dismissed. - Decided in favour of Revenue.
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