9911796707
TMI Blog2017 (5) TMI 1512X X X X Extracts X X X X X X X X Extracts X X X X ..... Department has been taken following Grounds of appeals: i. The learned CIT(A) has erred in law as well as on facts of the case in directing to delete the tax u/s.201(1) of Rs. 36,25,103/- and interest u/s. 201(1)(a) work out of Rs. 13,05,037/-. ii. On the facts and in the circumstances of the case, the learned CIT(A) ought to have decided the issue under reference, in the light of evidence obtained by him during the appellate proceedings after following the due procedure of law. 3. The relevant facts as culled out from the materials on record are as under:- The appellant is engaged in the business of construction of roads and bridges on contract basis and mainly doing the government contracts. In this case a survey u/s.133A was carrie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on account of non deduction of TDS on labour charges paid in cash to the individual laborers. 5. During the hearing, following points were highlighted by the assessee. To explain the correct nature of business of appellant: * Appellant stated that he is engaged in business of construction of Road since more than 30 years with more than 7 partners all the time and hence it has vide experience of business. In such business it is inevitable to make cash payments to laborers. All the laborers were personally appointed by the partners and employees of the firm and cash payment were made to all of the personally by the partners on 10 to 15 days interval. * Hence, there is a pre defined and well established system of managing laborers and t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... site is nowhere covered for the TDS purpose. * Hence, no TDS is deductible on the labour charges paid by us as the amount is paid to individual labourers hired by us at various sites. * Section 194C clearly provides that there must be a contract between two parties to attract TDS. There is no oral or written contract in this case as the amount is paid to labourers who are illiterate. * By no means can payment of such charges be brought under the purview of Section 194C. The labour charges are paid to individual labourer independently and the appellant has never appointed any labour contractor. * Further, when the TDS is not applicable, the question of maintaining PAN of the person to whom the payment has been made does not arise. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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