TMI Blog2016 (6) TMI 849X X X X Extracts X X X X X X X X Extracts X X X X ..... ors nor was it possible to hold that the assessee had assigned the work entrusted with him to those four contractors. Unless these two facts were proved, the question of Section 194C(2) becoming applicable to the assessee could not arise. - Decided in favour of assessee - ITA No. 145 of 2010 - - - Dated:- 13-6-2016 - Girish Chandra Gupta And Asha Arora, JJ. For the Appellant : Mr. Malay Dhar, Adv For the Respondent :Mr. Aniket Mitra, Adv ORDER The Court : The appeal is directed against a judgment and order dated 15th January, 2010 passed by the learned Income Tax Appellate Tribunal, Bench-A, Calcutta pertaining to the assessment year 2006-07 allowing an appeal of the revenue. The aggrieved assessee has come up in appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... suance of a contract with the sub-contractor for carrying out, or for the supply of labour for carrying out, the whole or any part of the work undertaken by the contractor or for supplying whether wholly or partly any labour which the contractor has undertaken to supply shall, at the time of credit of such sum to the account of the sub-contractor or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct an amount equal to one per cent of such sum as income-tax on income comprised therein: [Provided that an individual or a Hindu undivided family, whose total sales, gross receipts or turnover from the business or profession carried on by him exceed the monetary limits s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (2), the revenue has to establish that the assessee has entered into a contract with the aforesaid four persons for carrying out the whole or part of the work undertaken by the assessee. He submitted that there is nothing on the record to show that the assessee has assigned the work undertaken by him to the aforesaid four persons or to anyone of them. He added that there has to be an offer and acceptance before a contract can come into existence. In the case before us, there is nothing to show that there was any such offer and acceptance between the assessee and the aforesaid four persons. On the contrary, the evidence which is on record, namely, letters received by the assessing officer from the aforesaid four persons, in sum and substance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... agent to act in business of agency.- Where an agent, holding an express or implied authority to name another person to act for the principal in the business of the agency, has named another person accordingly, such persons is not a subagent, but an agent of the principal for such part of the business of the agency as is entrusted to him. Illustrations (a) A directs B, his solicitor, to sell his estate by auction, and to employ an auctioneer for the purpose. B names C, an auctioneer, to conduct the sale. C is not a sub-agent, but is A s agent for the conduct of the sale. (b) A authorises B, a merchant in Calcutta, to recover the moneys due to A from C Co. B instructs D, a solicitor, to take legal proceedings against C Co., fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded, reference may be made to the judgment in the case of Padma Uppal vs The State of Panjab reported in AIR 1977 SC 580. Mr. Mitra appearing for the revenue was unable to show any reasoning advanced by the learned Tribunal to demonstrate that the aforesaid finding of the learned CIT was wrong. Except for the four letters which we already have quoted above, there was no other evidence available. On the basis of the aforesaid four letters it was not possible to hold that the aforesaid four persons were sub-contractors nor was it possible to hold that the assessee had assigned the work entrusted with him to those four contractors. Unless these two facts were proved, the question of Section 194C(2) becoming applicable to the assessee could not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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