Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

ACIT (TDS) , TDC Circle 1 (1) Hyderabad Versus Greater Hyderabad Municipal Corporation, East Zone, Hyderabad

2015 (10) TMI 2321 - ITAT HYDERABAD

Penalties u/s 271C - Non deduction of TDS u/s 194C from the payments made to the contract workers - Held that:- the issue relating to the assessee’s liability to deduct tax at source from the similar payments made to contract labourers had come up for consideration before the Tribunal in assessee’s own case for the earlier years and the same was decided by the Tribunal in favour of the assessee concuding the allotment of work by the assessee to the SHGs is not by way of contract but is engagemen .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ribed limit u/s 192 of the I.T. Act, the TDS provisions are not applicable to the facts of the case before us.

Cancelling the penalties imposed u/s 271C thus is duly approved by the Tribunal holding that the assessees were not liable to deduct tax at source from the payments made to contract labourers who formed Self Help Groups. - Decided in favour of assessee. - ITA No.164/Hyd/2015, ITA No.165/Hyd/2015 - Dated:- 24-7-2015 - Shri P.M. Jagtap, Accountant Member For the Appellant : Sh .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

not deducted by the assessees from the payments made to the contract workers. In this regard the explanation of the assessee that the contract workers are its employees and the amounts paid to them being less than the taxable limit, in case of every individual, there was no requirement of deduction of tax at source, was not found acceptable by the AO. According to him, there was no employeremployee relationship between the assessee and the concerned workers and since there existed a contract agr .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

during the course of the said proceedings, the following explanation was offered by the assessees: 'It is a local authority being a wing of Municipal Department of Govt. of Andhra Pradesh. The assessee appoints sanitation workers for cleaning the roads. All such people are recruited in groups. Each group is headed by a person. Each group is formed with one supervisor and 18 workers. . ..... Incharge of each group will be managing the work and also distribute the wages. He collects the aggre .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ents, the assessee started deducting the tax at source in respect of the sanitation workers and the amount so deducted is being remitted to the account of the Central Govt. In respect of earlier period also, on receipt of the notice the assesee deducted that tax and remitted to the account of the Govt. account alongwith interest. Therefore, it was never the intention of the assessee to avoid deduction of tax at source . 4. The above explanation offered by the assessee was not found acceptable by .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

assessees as well as the material available on record, the ld CIT (A) held that the relevant payments made by the assessees to each member of the Self Help Group being far below the taxable limit, there was no question of any obligation to deduct tax at source from the said payments and consequently, penalty u/s 271C was not imposable. Accordingly, he cancelled the penalties imposed by the AO u/s 271C in case of both the assessees. Aggrieved by the order of the ld CIT (A) giving this relief to t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the assessee for the following reasons given in Para No.6 of its order passed in ITA No.512 & 513/Hyd/2014 dated 24.04.2015: 6. Having heard the rival contentions and the relevant material on record, we find that the main issue is as to whether the SHGs can be called as contractors. The GHMC has engaged and issued the poceedings in favour of the SHGs by lots and work has been allotted per unit by fixing the wages per person and also specifying the number of workers to be engaged for each un .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     bird's eye view     ↓  


|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version