TMI Blog2015 (5) TMI 476X X X X Extracts X X X X X X X X Extracts X X X X ..... ence. The assessee submits that they have maintained records according to the standing orders of the Karnataka Land Army Corporation and a group leader is entrusted with all the responsibilities to disburse payment. After payment is made to the workers, receipt is obtained by the assessee, attendance is maintained and group leader is responsible to maintain the entire account for disbursing the payment to the workers and he is entitled only for the value for his labour. Thus end the matter back to the assessing authority reserving liberty to the assessee to produce such documents to substantiate its claim - Decided in favour of assessee for statistical purposes. - INCOME TAX APPEAL NOS.26-31/2014 & INCOME TAX APPEAL NOS.184-186/2014 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and activity of the contractor are similar to that of the group leaders and, therefore, the provisions of section 194C of the Act is attracted. Aggrieved by the said order, the assessee preferred an appeal to the Commissioner of Income-tax (Appeals). The Appellate Commissioner was of the view that the advances released to its employees by the assessee for labour/wage payment cannot be formed and qualified as a sub-contractor payment in the absence of contract agreement or documentary evidence. Therefore, the Appellate Commissioner set aside the order passed by the assessing authority. Aggrieved by the said order, the Revenue preferred an appeal to the Tribunal. The Tribunal by the impugned order held that when the assessing authority in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the workers is also maintained by the group leaders. If the amount is paid to the group leaders, there is no obligation on the part of the assessee to take receipts from the individual workers as well as the attendance. These aspects have not been considered by both the assessing authority as well as the Tribunal. He further submits that for the subsequent year, the Appellate Commissioner has remanded the matter back to the assessing authority to consider whether there is any agreement between the assessee and the labour heads or the group leaders with reference to the books of account maintained by the assessee after giving reasonable opportunity to the assessee. Based on the said finding, the applicability of section 194C of the Act co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the workers. Probably, he cannot go in search of employees, the responsibility is given to a person who brings the labour force, who is called as a group leader. He is also one among the workers who is engaged in executing the works. The payment is made to the group leader, in turn who disburses the amount to his co-employees. Merely because the amount was calculated on the basis of the cubic meter, running meter and square meter on fixed price according to the SR rules of the PWD, no inference could be drawn that the relationship is that of an employer and a contractor. Of course it is purely a question of fact and it is seen from the impugned order that the assessee has failed to produce evidence and, therefore, the assessing authority h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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