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2015 (9) TMI 76 - MADHYA PRADESH HIGH COURT

2015 (9) TMI 76 - MADHYA PRADESH HIGH COURT - TMI - Short deduction of TDS - whether the contract in question is a composite contract in the nature of a works contract to attract tds? - Held that:- An agreement was entered into by the assessee for the purchase of certain items vide quotation No.210.62 dated 04/05/2006 a purchases made from M/s Marine Power International, Dubai so also various other purchase contract similar in nature. This was not a composite contract, it was a simple purchase c .....

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The Assessing Officer in his remand note has admitted this position and the order passed by the Commissioner Appeals these aspects have been taken note of and it is specifically held that the contract on the basis of which the AO made the addition by treating the appellant company in default is for unit No.2 and not for unit No.1. If that be the factual position, its clear that for unit No.1 the contract in question for which addition has been made was one for which the provision of Section 195( .....

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For the Respondent : Shri Sumit Nema, learned counsel ORDER As common questions of law and facts are involved in all these 4 appeals filed under Section 260-A of the Income Tax Act by the revenue, they are being disposed off by this common order except the fact that the assessment quarter are different, all other the facts and questions of law are identical. 2. A show cause notice was issued by the Assessing Officer to the respondent assessee under Section 201(1) read with 206 C(7) as to why the .....

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Commissioner Income Tax Appeal vide his order dated 19/12/2011 came to the conclusion that the assessee was not liable to deduct TDS and therefore, deleted the addition. Appeal was partly allowed on various other grounds. Further appeal filed by the revenue having also being dismissed by ITAT, Jabalpur by the impugned order passed on 28/03/2014 this appeal by the revenue. It is the case of the revenue that as the contract in question is a composite contract in the nature of a works contract, th .....

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s out that the assessee has two units and for both the units i.e. Unit No.I & unit No.II two different contract were entered into. As far as the present appeals are concerned, they pertain to unit No.1 and for the said unit a contract was entered into with certain foreigns concern for the purpose of purchase of injunction pipes and various other items. This contract was not a composite contract, it was a simple purchase contract for procurement of certain items on prices fixed from a foreign .....

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e appellate authorities have taken note of the same and permitted the deduction. In doing so, he argues that the appellate authorities have not committed any error and on the basis of this admitted factual position no question of law arises for consideration as the purchase in question made is beyond the purview of the deductions. As contemplated under Section 195(2) of the Income Tax Act as is laid down by the Supreme Court in the case of GE India Technology (Supra). 4. We have considered the r .....

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