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2015 (7) TMI 931 - HC - Income TaxLiability to deduct TDS for the payments made to subcontractors u/s 194C - Tribunal merely relied upon the absence of a written contract to hold that there is no relationship of a subcontractor between the assessee and M/s. SMC Infrastructure Pvt. Ltd. and M/s. Ambika Enterprises and allowed assessee's appeal - Held that:- The tribunal found that the assessee is an Association of Persons(AOP). The association comprises of M/s. SMC Infrastructure Pvt. Ltd. which is a company incorporated under the Indian Companies Act, 1956 and M/s. Ambika Enterprises which is a proprietary firm. The association was for the purposes of bidding for contract of the Thane Municipal Corporation. It is the association which placed its bid and was eventually awarded the contract by the Thane Municipal Corporation on 16th November, 2004. The Tribunal noted this admitted fact in para9 of the order under challenge and found that the contract received from Thane Municipal Corporation was made over to the two entities noted above. The work was carried out by these two entities. The amount was received after the work was carried out and the same was handed over to the members to enable them to execute the contract. The association has neither kept any commission of its own nor any profit. The association comprising of these two members/partners joined together for the purposes of executing the project. It is in such circumstances, that no inference of any sub contractorship can be drawn. It is not correct to say that the Tribunal insisted on any written contract evidencing such relationship. The Tribunal noted the admitted facts and found that there is no subcontract or relationship of a subcontractor emerging from this undisputed factual position. It is in these circumstances, that it is correctly held that section 194 C(2) of the Income Tax Act has no application to the facts of the assessee's case. - Decided in favour of assessee.
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