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2016 (7) TMI 1187 - AT - Income TaxTDS liability - tds on terminalling charges - segregation of agreement into purchase and works contract - Held that:- From the facts we find that in the instant case the assessee was buying the petroleum products from BRPL. Besides the above the loading services were also provided by BRPL in connection with the purchase of the petroleum product. For the loading services the assessee was making the payment separately to BRPL. The petroleum products were purchased by the assessee in bulk and regular basis for which loading facility was provided by BRPL. The assessee for availing the loading facility was making the payment to the same party from which he was buying the products i.e. BRPL. Thus the loading facility was intricately linked with the every purchase of the products. It was not possible for the assessee to purchase the products without availing the infrastructure facility of BRPL. Thus in our view it shall not be inappropriate to treat the expenses on infrastructure facility at par with the purchase. The method for the payment of infrastructure facility and entering into a separate agreement cannot be the sole basis to treat the transaction independent of the purchase. In the case on hand, the rate lump sum consideration was fixed for the infrastructure facility. No direct labour was involved in the case on hand. The claim of the assessee that other companies to whom identical payments were made by the assessee have furnished the form 197/197A of the Act for non-deduction of tax, in our view the mere furnishing of form 197A of the Act cannot change the character of the transactions. The ld. AR also submitted that in the earlier years the identical payments were made for the availing of infrastructure facilities but no disallowance was warranted. The ld. DR failed to bring anything on record contrary to the arguments advanced by the ld. AR.Therefore, in our considered view, the provision of Sec. 194C, in the instant case is not applicable to the assessee. Accordingly, we reverse the orders of Authorities Below and grounds raise by assessee are allowed
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