TMI Blog1991 (3) TMI 178X X X X Extracts X X X X X X X X Extracts X X X X ..... 8075-90 73057-80 Bills of M/s. Mehul Industries : 1. 30-6-75 15396-00 2. 30-9-75 17466-60 3. 30-12-75 13431-40 4. 31-3-76 24312-00 70606-00 These two parties had done job works for the assessee company and the payments had been made for those job works. According to the ITO, the assessee should have deducted tax at source at the rate of 2% as required under the provisions of section 194C of the Income-tax Act, 1961 but the assessee did not deduct any tax at source. The ITO initiated proceedings for charging interest under section 201(1A) of the Act for non-deduction of tax at source and for not crediting the same to the account of the Central Govt. The contention of the assessee before the ITO was that job work was done as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s no express or implied contract with these two concerns and as such provisions of section 194C were not applicable. This submission cannot be accepted. A contract could be either in writing or oral. The contract could also be either express or implied. Admittedly, job work had been done by these two parties and payments had been made at particular rate. The circumstances would indicate that there was a contract and under that contract the amounts had been paid at particular rates. Consequently, provisions of section 194C would be attracted. No other arguments regarding applicability of section 194C has been raised. Consequently, the main argument in the grounds of appeal would fail. 4. In the course of hearing of this appeal, the learne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... incur, be deemed to be an assessee in default in respect of the tax. Thus, as far as the tax which is deductible by the assessee is concerned, he would be deemed to be the assessee in default with effect from the date on which the default took place. Section 231 of the Act prescribes a period of one year for commencing the proceedings of recovery of the sum payable by the assessee and the said period of one year runs from the last day of the financial year in which the assessee is deemed to be in default. In the present case, it is not known whether the assessee has paid the amount of tax which was required to be deducted by him. Assuming that he had not paid the tax which was required to be deducted by him upto the date on which the proce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by filing of suit by the Government. In this connection, the recent decision of Calcutta High Court in British Airways v. CIT [1991] 92 CTR (Cal.) 227 is instructive. It has been laid down therein that period of limitation laid down by section 231 is confined to recovery proceedings under the Income-tax Act and that provision does not curtail the power of the Government to file a suit to recover the outstanding amount of tax payable by any other process of law and that outstanding amount of tax can be recovered like any other debt due to the State by filing a suit. The Calcutta High Court relied on the decision of Supreme Court in Raja Jagadish Pratap Sahi v. State of UP [1977] 88 ITR 443 in support of this proposition. The Calcutta High ..... X X X X Extracts X X X X X X X X Extracts X X X X
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