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2015 (10) TMI 1617 - AT - Income TaxTDS liability u/s 194C - payment made to contractors - CIT(A)deleted tds liability - Held that:- Clause 3(e) and 3(f) clearly shows that the amount of ₹ 10 crores retained by the contractor, M/s. Arihant Ship Breakers Pvt. Ltd. from the sale of the scrap is clearly payment received by M/s. Arihant Ship Breakers Pvt. Ltd. in lieu of the contract and against the bid of ₹ 99 crores being the final amount due to the contractor. Just because the contract has not been completed for reasons best known to the contractor and the contractee, it does not mean that the payment made by the contractee to the contractor changes its character from 'payment of consideration' to 'deposit' nor can such arrangement be permitted to stop the levy of the dues to the crown. Here clearly, the amount retained by M/s. Arihant Ship Breakers Pvt. Ltd. is a part of the total contract and the provisions of Sec. 194C is clearly attracted to the said amount. In the circumstances, we are of the view that the order of the ld. CIT(A) on this issue is not sustainable on the facts of the case and consequently stands reversed. - Decided in favour of Revenue.
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