TMI Blog2015 (11) TMI 266X X X X Extracts X X X X X X X X Extracts X X X X ..... aid as per the agreed terms and conditions and the aggregate amount is paid to the group and not to any particular person. Therefore, as rightly held by the CIT (A), there is no contractor-contractee relationship but is more in the nature of employee-employer relationship as the assessee is also making contributions to the EPF and ESI and as rightly pointed out by the ld CIT (A), the payments made to an individual is not exceeding the prescribed limit u/s 192 of the I.T. Act, the TDS provisions are not applicable to the facts of the case - Decided in favour of assessee. - ITA No. 161/Hyd/2015, ITA No. 162/Hyd/2015, ITA No. 163/Hyd/2015 - - - Dated:- 24-9-2015 - P. Madhavi Devi, JM And B. Ramakotaiah, AM For the Appellant : Shri S K ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... attracting TDS provisions. To substantiate and support its claim, it was further submitted that the assessee was crediting EPF and ESI on behalf of the assessees to the concerned Departments and therefore, there exists employe-employee relationship and the provisions of TDS are not applicable. The AO was, however, not convinced with the assessee's contentions and held that the sanitation work is being given by GHMC to SHGs and each of the group consists of 18 workers and all of them are working as sanitation workers based on the work awarded in the name of SHG by the GHMC. He observed that the Supervisors of the SHG's are not given any identify cards or any employee identification No. issued by the assessee and also as seen from th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able. The relevant Paragraph No.6 is reproduced hereunder for ready reference: 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 unit and per shift. The working hours of the workers as well as the shifts are also specified in the notification. From the bills paid to the SHGs also, it is seen that the payment is made on the basis of number of mandays and wages per day and is not a fixed amount per month. Thus, it is clear th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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