TMI Blog2013 (1) TMI 539X X X X Extracts X X X X X X X X Extracts X X X X ..... ut the true character of the payment made. At the same time, the CIT (A) was also not justified in presuming the payments to be in the nature of work contract falling u/s 194C when she herself has observed that the claim of the assessee cannot be accepted since the payment could not have been just on the basis of debit note and there might have been an agreement either oral or written for providing the particular services. Thus the CIT (A) was not justified in directing the AO to consider the payment u/s 194C and accordingly calculate tax and interest u/s 201(1)& 201(1A). The order of the CIT (A) is modified to this extent only. However, it is proper to remit the matter to the file of the AO for determining the issue afresh after conduc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing an amount of Rs.32 lakhs paid to Hyderabad Cricket Association (HCA in brief) towards ground rent. In reply to the show cause notice, the assessee submitted that the amount of Rs.32 lakhs comprises of Rs. 1 lakh towards rent for parking lot, Rs. 1 lakh for ground levelling work undertaken for parking on which tax was deducted at source as per the provision of section 194C . Rs.10 lakhs was paid as advance towards expenses to be incurred on assessee s behalf for diesel of generator used for lighting the stadium and balance of Rs.20 lakhs towards reimbursement of cost of water tanker charges food expenses etc. In support of such contention, the assessee also submitted the debit note raised by the Hyderabad Cricket Association on the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reasons. The CIT (A) further noticed that the assessee claimed to have paid Rs.10 lakhs towards generator expenses for lighting the stadium and deducted tax and again separately claimed expenses for diesel for generators etc. The CIT (A) observing that since the assessee has not provided any agreement for supply of generator, it is not possible to ascertain whether the contract for generators include diesel for running them. The CIT (A) further observed that in the event it is not part of the agreement then there must have been understanding/agreement for providing all the services between the assessee and HCA in terms of which the HCA incurred these expenses and raised a debit note on the assessee. The CIT (A) rejected the contention of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r use of the ground. 6. We have heard rival submissions and perused the material on record. As it appears the assessee has accepted the finding of the CIT (A) that the payments made by the assessee are for work which is in the nature of work contract attracting the provisions of section 194C of the IT Act. Therefore, the only issue to be decided is whether the payments were towards rent of the ground along with other facilities requiring deduction of tax at source u/s 194I of the Act or the payments are for works contract as per section 194C of the Act. Before coming to a definite conclusion on this issue, it is very much necessary to ascertain the exact nature of payment and the services rendered or facilities provided for which such pay ..... X X X X Extracts X X X X X X X X Extracts X X X X
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