TMI Blog2017 (3) TMI 963X X X X Extracts X X X X X X X X Extracts X X X X ..... ates payable by the assesssee. The overall terms and conditions of the contract and other facts brought before us indicate that it would fall within the nature of ‘work’ as stipulated in section 194C. Similarly, with respect to the other parties also, viz. Gharpure Engineering & Construction (P) Ltd and Ramky Infrastructure Ltd also, perusal of their bills, work orders and agreements clearly indicate that assessee assigned them contract work on turnkey basis for carrying out variety of jobs of civil construction, etc. None of the jobs carried out by these persons would fall in the scope of section 194J. The activities performed by these parties would clearly fall within the definition of ‘work’ as stated in section 194C. - Decided in favour of assessee - I.T.A.No.1617 /Mum/2014, I.T.A.No.1618/Mum/2014, I.T.A.No.1619/Mum/2014, I.T.A.No.1620/Mum/2014 - - - Dated:- 17-3-2017 - SHRI MAHAVIR SINGH (JUDICIAL MEMBER) AND SHRI ASHWANI TANEJA ( ACCOUNTANT MEMBER) For The Appellant : Ms Aasifa Khan For The Respondent : Shri Suman Kumar ORDER Per Ashwani Taneja, AM:- These appeals pertain to same assessee for different years involving identical issues, therefo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Nerual, Navi Mumbai. Nill 47,73,66,795 25,82,15,045 30,33,651 HN Bhatt Co For contract work on turnkey basis including civil construction, designing, contructing and erecting and commission of Sewerage Treatment Plan including operation and maintnenance at Vashi Navi Mumbai. Nill 55,62,24,358 14,36,11,380 4,19,95,163 Ramky Infrastructure Ltd For contract work on turnkey basis including civil construction, designing, contructing and erecting and commission of Sewerage Treatment Plan including operation and maintenance at Airoli Navi Mumbai Nill 27,80,00,250 26,30,34,887 Nill 3. During the course of hearing, Ld.Counsel of the assessee argued the case vehemently and submitted that the nature of activities carried out by the recipient would show that payment made by the assessee was on account of work arising out of contractual obligations. It is not the case of rendering of technical or professional services. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting details of work done by them. 7. The brief background of the assessee is that assessee is a local selfgoverned body which came into force under Mumbai Municipal Provincial Act, 1949. It has been noted by the AO in the order passed by him that since assessee is a local authority, it does not have any object of carrying out a business to make profits. However, it collects various taxes / fee, etc to meet out its expenses for provisioning of civic services. Under these circumstances, it has made payment for various purposes and deducted tax u/s 194C. The AO was of the opinion that tax should have been deducted u/s 194J. 8. In the case of payment to Mangak Anand Healthcare, Mumbai, work order was issued by the assessee dated 09-01-2004 wherein contract was awarded to the said person by the assessee for running x-ray and sonography services in all four MCH centre for a period of 5 years from the date of signing of the agreement. Thus, the said party was to provide aforesaid services of xray and sonography, etc. at the hospitals run by the assessee. The rates were fixed by the assessee in the work order on per patient basis. Our attention was also drawn upon the agreement ente ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t fal ls wi thin the ambi t of Sect ion l94J . Sect ion l94C is not a res iduary clause. The respondent would therefore be entitled to succeed even if it is established that the contract does not fill within the ambit of Section 194J. 11,the contract also does not fall under Section 194C there would be no liability on the part of the respondent to deduct tax at source at all. The respondent has, however, not contended that the contract does not fall within Section 194C. It would be appropriate, therefore to first examine whether the contract falls within Section 194J. In our view it does not 10. Before referring to the clauses in the contracts entered into between the respondent and the contractors relied upon by Mr. Putney in support of his contention that it falls within the ambit of Section 194J, it is necessary to refer to some of the other provisions thereof as well . The various contracts entered into between the respondent and the contractors are identical. Clause I provides that the contractors are to execute the work of erection, testing, commissioning and trial operation of power cycle piping, boiler and LP piping packages for units in Haryana and in accordance with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in accordance with and subject to the terms and conditions of the contract. All the other provisions are with a view to ensuring the same. In other words, the other provisions of the contract are to ensure that the contractors erect test commission and conduct trial operation of the equipment in accordance with their obligations tinder the contract. Once that is seen, it is clear that the reliance upon the terms and conditions on behalf of the appellant to contend to The contrary is not will founded, 13. Mr. Putney firstly relied upon the following clause:- 4. MIs; PCP confirmed that the manpower deployment plan submitted by them alongwith the offer and subsequently vide letter No. PCP/TNDI9GU dated 26.06.2009 is tentative and reconfirmed that the adequate manpower including supervisors will be deployed at site for timely completion of work. BHEL further pointed out that manpower and Qualified Supervisors (or BEEL's use as per clause no. 56.2 of the NIT have not been included in their deployment plan. M/s. PCP confirmed that they will deploy manpower as per clause No 502 free of cost exclusively for BHEL services. Further. M/s PCP has also equipment that they will ..... X X X X Extracts X X X X X X X X Extracts X X X X
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