TMI Blog2013 (10) TMI 376X X X X Extracts X X X X X X X X Extracts X X X X ..... covered by the Circular No. 894 dated 08.03.1994, issued by the CBDT - Further, payment is duly reflected in the ledger account under the head "material purchased" and the same was part of the sums aggregating payment, which was appearing distinctly in the Profit & Loss Account also. When it is so, then the purchase of the goods/equipments as per the Circular (supra), the provisions of Section 194(C) is not attracted and the case of the assessee is covered by the Circular issued by the CBDT – Decided against the Revenue. - Income Tax Appeal No. - 154 of 2009 - - - Dated:- 9-10-2013 - Hon'ble Rajiv Sharma And Hon'ble Dr. Satish Chandra,JJ. For the Appellant : D. D. Chopra, Prashant Kumar For the Respondent : Amit Shukla, S. K. G ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch are as under :- (i) Whether in facts and in the circumstances and in law the learned Income Tax Appellate Tribunal was right in holding that no T.D.S. is deductible on the contract amount of Rs.2,01,09,049.00 when the contract was not a contract for sale but was in fact a turnkey contract involving specialized works. (ii) Whether in facts and in the circumstances and in law the learned Income Tax Appellate Tribunal was correct in deleting addition of Rs.2,01,09,049.00 relying on CBDT Circular No. 681 dated 8.3.1994 whereas the circular had no application to the case. With this background, Sri D.D. Chopra, learned counsel for the Department has justified the order passed by the Assessing Officer. He submits that the tax was deducted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessing Officer. On the other hand, learned counsel for the assessee has relied on the impugned order. He has drawn the attention to the Circular No. 681 dated 08.03.1994, issued by the CBDT, where the applicability of Section 194(C) to service contracts was clarified in view of the observation made by Hon'ble Apex Court in the case of Associated Cement Co. Ltd. vs. CIT, [1979] 120 ITR 444. In the said clarification, it was observed in Clause 7(vi)(b) of the circular that :- "Where, however, the contractor undertakes to supply any article or thing fabricated according to the specifications given by Government or any other specified persons and the property in such article or thing passes to the Government or such person only after su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent proceedings and the same were also placed before the CIT(A). The bills proved that the payments was pertaining to the supply of goods. The case of the assessee is covered by the Circular No. 894 dated 08.03.1994, issued by the CBDT, where the definition of the contract for sale was defined. Further, it appears that the payment is duly reflected in the ledger account under the head "material purchased" and the same was part of the sums aggregating payment, which was appearing distinctly in the Profit Loss Account also. When it is so, then the purchase of the goods/equipments as per the Circular (supra), the provisions of Section 194(C) is not attracted and the case of the assessee is covered by the Circular issued by the CBDT. When i ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
