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2016 (7) TMI 611 - AT - Income TaxReopening of assessment - whether there was an obligation on the part of the assessee to deduct tax at source in terms of seciton 194C? - Held that:- As already seen while concluding the original assessment proceedings the issue of TDS on dyeing and printing charges was raised by the assessee and in the order passed u/s 143(3) of the Act dated 28.12.2007 no addition whatsoever was made u/s 40(a)(ia) of the Act for non deduction of tax at source. Thus it is clear that the question as to whether dyeing and printing charges paid by the assessee had to suffer TDS in the hands of the assessee, who is an individual is deemed to have been considered by the AO and order of assessment was already passed accepting the claim of the assessee that such TDS obligation had not extended to the assessee, who is an individual. From the reasons recorded by the AO u/s 148 of the Act it is clear that without any new material coming to the possession of the AO had merely a change of opinion, reassessment proceedings have been initiated by the AO. Such a course is not permissible as held by the Hon’ble Supreme Court in the case of CIT vs M/s. Kelvinator of India Ltd. (2010 (1) TMI 11 - SUPREME COURT OF INDIA ). We are of the view that the provision of section 194C (2) of the Act apply to a contractor and not to a person such as the assessee who was a trader in art silk fabricss. When the provision of section 194C(2) of the Act are not attracted the question of invoking the proviso to section 194C(2) does not arise. As rightly contended by the ld. Counsel for the assessee individuals whose total sales, gross receipts or turn over from the business if it exceeds the monetary limit specified u/s 44AB of the Act during the financial year immediately preceding the financial year in which a sum is credited or paid the account of the contractor is covered u/s 194C (1)(k) of the Act which admittedly came into effect only from 01.06.2007 - Decided in favour of assessee
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