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2019 (11) TMI 811 - HC - Income TaxTDS u/s 194C - expenditure for purchase of advertisement space - whether contract in question is a contract for work ? - as per revenue expenditure incurred for purchase of bulk advertisement space ought to be disallowed, since assessee had not deducted at source thereon - HELD THAT:- If the order passed by the Commissioner of Income Tax as well as the order passed by the Income Tax Appellate Tribunal are read in conjunction in the light of the Circular No.13 of 2006 issued by the Central Board of Direct Taxes, it is axiomatic that provisions of Section 194C would apply to a contract for work and not to a contract for sale. The contention of the learned counsel for the Revenue that the Tribunal ought to have restricted its scrutiny with regard to the validity of the order of remand passed by the Commissioner of Income Tax, appears to be attractive at first blush, however, in peculiar facts of the case, we are not inclined to accept the aforesaid submissions as both the authorities on the basis of the materials available on record has recorded the finding in favour of the assessee that the contract in question is a contract for sale and is not a contract for work. Therefore, such an exercise in the fact of the case would be an exercise in futility. We are inclined to answer the additional substantial question of law framed by us today in the affirmative. Order passed by the Income Tax Appellate Tribunal as well as by the Commissioner of Income Tax insofar as it holds that for the assessment year 2007-08, the amount has to be disallowed under Section 40a(ia) of the Act is hereby set aside and it is held that the provisions of Section 194C do not apply to the case of the assessee. In the result, the appeal is allowed.
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