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2024 (4) TMI 357 - CALCUTTA HIGH COURTTDS u/s 194C - addition u/s 40(a)(ia) - Payments made to Calcutta Dock Labour Board by the appellant in terms of provisions of clauses 41(5) and 56(1) of the Dock Workers (Regulation of Employment) Scheme, 1970 framed under the Dock Workers (Regulation of Employment) Act, 1948 - HELD THAT:- As decided in SRI TARSEM SINGH VERSUS SRI SUKHMINDER SINGH [1998 (2) TMI 596 - SUPREME COURT] and VIZAGAPATAM DOCK LABOUR BOARD VERSUS STEVEDORES ASSOCIATION, VISHAKHAPATNAM & ORS. [1969 (9) TMI 118 - SUPREME COURT] as well as specific provisions of the Act, 1948 and the Regulation Scheme, 1970, we are of the firm view that the contract of employment is between the appellant and the dock workers and not between the appellant and the Board. The Board has merely discharged its statutory obligation with regard to regulation of dock workers. As we find that Section 194C of the Act, 1961 has no application on facts of the present case with regard to payment of wages by the appellant/assessee to the dock workers through the Administrative Committee/Board. There is no contract of supply of labour between the Board/Administrative Committee and the appellant/assessee i.e., the registered employer. The appellant/assessee was not liable to deduct tax at source u/s 194C while making payment of wages to its employees i.e. the dock workers through the Administrative Committee/Board constituted under the Act, 1948 read with Regulation Scheme, 1970. Consequently, the provisions of Section 40(a)(ia) of the Act, 1961 would also not come into play. The impugned order of the Tribunal deserves to be set aside. Decided in favour of assessee.
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