New User   Login      
Tax Management India .com TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2016 (5) TMI 979 - ITAT BANGALORE

2016 (5) TMI 979 - ITAT BANGALORE - TMI - TDS u/s 194C - non deduction of tds - whether the said payments made by the respondent-assessee to KHB and RITES Ltd. are in the nature of consideration paid for works contract? - Held that:- CIT(A) correctly held that the entire payment made by the appellant to KHB and Rites are not in the nature of income of the payees, and such entire amounts could not be said to be liable for deduction of tax u/s 194C. In fact, the payment to the extent of remunerati .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ted:- 20-5-2016 - Shri Vijay Pal Rao, Judicial Member And Shri Inturi Rama Rao, Accountant Member For the Appellant : Dr. P.K. Srihari, Addl. CIT ( DR ) For the Respondent : Shri Shreehari Kutsa, CA ORDER Per Bench These appeals are by the Revenue directed against the order of CIT(Appeals)-V, Bangalore dated 28.10.2014 for the assessment years 2011-12 to 2014-15. Since in all these appeals, common issue is involved, we proceed to dispose of the same by this consolidated order. 2. The Revenue has .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ees i.e. M/s RITES Ltd and M/s KHB are acting as agents vis-a-vis the contractors actually executing the construction work of buildings for the payer. 5. The Ld CIT(A) has erred in not considering the facts brought out by the AO to the effect that payees i.e. M/s RITES Ltd and M/s KHB were awarded the contract for construction of college buildings. 6. The Ld CIT(A) has erred in not considering the facts brought out by the AO to the effect that payees i.e. M/s RITES Ltd. and M/s KHB have quoted 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

v ITO [2002] 81 ITD 173 (Lucknow) and allowing relief. 10. The Ld CIT(A) has erred in holding that the benefit under proviso to section 201(1) is available on production of declaration in 26A, though no tax is remitted by the payee M/s KHB in its income tax return. 11. The Ld CIT(A) has erred in holding that the benefit under proviso to section 201(1) is available on production of declaration in 26A, though full amount is not accounted as income by the payee M/s RITES Ltd. 12. For the above grou .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

t source on the payments made to the above parties under the provisions of section 194C of the Act and he therefore held the respondent-assessee as an assessee in default for not deducting tax at source and raised demand as under:- Demand raised by way of separate orders Assessment Year Section 201(1) Section 201(1A) Total 2011-12 1,79,76,000 55,13,040 2,39,84,090 2012-13 65,39,740 14,94,434 66,84,174 2013-14 33,80,040 3,14,121 36,94,161 2014-15 25,44,000 1,19,400 26,63,400 Total 3,04,39,780 74, .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ource under the provisions of section 194J, subsequently the CIT(Appeals) upheld the liability on interest u/s. 201(1A) of the Act on the delay in deduction of tax deduction at source under the provisions of section 194J of the Act. 5. The Revenue, being aggrieved by the part of direction of the CIT(Appeals) that such payments are not liable for tax deduction at source u/s. 194C, filed the present appeals before us. 6. The ld. Sr. DR vehemently contested that the subject payments were in the nat .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

S Ltd. He submitted that KHB / RITES Ltd. had not undertaken any works with the respondent-assessee. They have rendered only technical services in connection with the execution of the construction works for Engineering & Polytechnic College buildings in the state of Karnataka. In this connection, he has drawn our attention to the relevant clause of the agreements and also the order of CIT(Appeals). He also relied on the decision of the coordinate Bench of Lucknow in the case of M/s U.P. Stat .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

to KHB and RITES for each of the year under appeal are payments in the nature of contract income of the recipient payees, liable to deduction of tax u/s 194C, it is clear from the terms of agreement entered by the appellant with KHB and RITES that they are not contractors for the execution of actual work of construction of college buildings for the appellant. Although the fact that tax was deducted by them while making payments to contractors would not help the appellant's case, it is perti .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ontractors for construction, supervise the construction for quality and design and also certify the bills for payment to contractors executing the construction of college buildings. The agreement also specifies the remuneration for services rendered by KHB and RITES (10% of the built up cost) with regard to and a percentage of the project cost, and the provision for payment on actual basis in the nature of re-imbursement. I concur with the argument of Ld. AR that the issue is squarely covered 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

 

 

 

 

 



|| 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