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TMI Blog2014 (1) TMI 895X X X X Extracts X X X X X X X X Extracts X X X X ..... O had passed the assessment order without giving sufficient and adequate opportunity to the appellant and therefore the said order was passed in violation of the principles of natural justice.and ,thus, was liable to be quashed or alternatively set aside. 3. The above grounds of appeal are without prejudice to one another. 4. The Appellant craves leave to add, alter, amend and or delete any of the above grounds of appeal. 2. Assessee-company engaged in the business of Hoteliering and Catering, filed its return of income on 28.11.2006.declaring total income of Rs.15.82 Crores.Assessing Officer(AO) finalised the assessment order u/s.143(3) of the Act on 15.12.2008,determining the total income at Rs.16. 52 Crores.First Ground of appeal pert ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submissions of the assessee and the assessment order he held that assessee had entered into a professional services contractual agreement with DLC, that DLC was in business of providing and management of professional manpower leasing services,that DLC was to provide Date Entry Operators (DEOs) and Computer Operators (COs)for the work of the assessee company, that DEOs and COs were expected to be 10+2 pass out with 2-3 years of Diploma/Data Entry Experience, that they were supposed to have knowledge of Windows Operat -ing System and working knowledge of Scanners, that the contract between the two companies was not for supply of general labour for manual work, that DEOs and COs were deployed by the company to render technical services, that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act. Finally,he upheld the addition made by the AO amounting to Rs. 1.82 crore. 2.2.Before us,Authorised Representative (AR) submitted that assessee had entered into an agreement with labour contractor, that it had deducted TDS @ 2% as per the provisions of section 194C of the Act, that section 194J was not applicable in the case under consideration. He referred to Page No.37,40, 55, 60, 62-63, 92 of the paper book. Referring to the agreement, he submitted that from the job description of the persons employed it was evident that the contract in question was labour contract.He further stated that even if the provisions of section 194J of the Act were applicable mere short deduction of TDS would not lead to invoking of section 40(a)(i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and provision of section 194J would be attracted to the payment made to them by the assessee company. We find that Kochin Bench of ITAT has dealt the issue of non-deduction/short deduction of TDS with respect to section 40(a)(ia) of the Act in the case of Appolo Tyer Ltd. (supra). While deciding the issue it had referred to the maters of S.K. Tekriwal, delivered by the Hon'ble High Court of Kolkata and Chanda Bhoy and Jasso Bhoy (14 SOT 448-Mum). Refering to the case of of Chanda Bhoy and Jasso Bhoy (supra) Kochin bench had observed as under: "The Mumbai Bench found that short deduction of TDS, if any, could have been considered as liability under the Income-tax Act as due from the assessee. Therefore, the disallowance of the entire expe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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