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2015 (3) TMI 669 - AT - Income TaxNon deduction of TDS on composite work contract u/s 194C - supply of plant & machinery of windmill, for civil/electrical works and erection and commission of windmill - interest demand for differential TDS was raised u/s 201 & 201(1A) - Held that:- It has not been disputed that the assessee acquired the windmill plant by way of different invoices. The amount referred to in column no. 5 of the above table represents the amount of the purchases of the machinery and column no. 6 represents the contract value liable for Section 194C. The assessee has not deducted TDS on the amounts mentioned at column no. 5 which is not a contract amount but it is the amount of purchases. We are unable to agree with the ld. DR that because there was turnkey project, therefore, each and every part of the transactions comprised therein is liable for TDS u/s 194C of the Act. Various benches of ITAT as referred to above have held that in case of composite contract also, the portion of purchase of machinery is to be excluded while determining the liability u/s 194C of the Act. In view of these facts, material on record , arguments raised before us and the case laws cited, we hold that the assessee is not liable for deduction of tax u/s 194C on the amounts of purchase of windmill machinery. The consequent demand raised in this behalf is deleted. - Decided in fvaour of assessee.
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