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2015 (9) TMI 76 - HC - Income TaxShort deduction of TDS - whether the contract in question is a composite contract in the nature of a works contract to attract tds? - Held that - An agreement was entered into by the assessee for the purchase of certain items vide quotation No.210.62 dated 04/05/2006 a purchases made from M/s Marine Power International Dubai so also various other purchase contract similar in nature. This was not a composite contract it was a simple purchase contract for purchase of certain items all these purchase agreements were made for unit No.1 and are beyond the purview of deductions contemplated under Section 195 (2) however the assessee also has a separate unit known as unit No.2 which has a separate TAN and PAN and assessment for this unit is also done separately and for this unit a worthy contract was entered into with Koppern Germany for supply purchase and installation of certain machinery i.e. a composite works contract. The Assessing Officer in his remand note has admitted this position and the order passed by the Commissioner Appeals these aspects have been taken note of and it is specifically held that the contract on the basis of which the AO made the addition by treating the appellant company in default is for unit No.2 and not for unit No.1. If that be the factual position its clear that for unit No.1 the contract in question for which addition has been made was one for which the provision of Section 195(2) 201(1) and 201(1A) is not attract as the contract for the said unit was not a composite contract. Accordingly if the principle laid down in the case of GE India Technology ( 2010 (9) TMI 7 - SUPREME COURT OF INDIA) are applied in the facts of the present case no question of law arises for consideration. - Decided in favour of assessee.
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