https://www.taxtmi.com/caselaws?id=178099 The Tribunal held that the Biri manufacturing company was not liable to deduct tax under Section 194C of the IT Act for payments to Munshis as the payments were for labor charges and not to contractors directly. The Tribunal's decision aligned with Circular No. 487 issued by the CBDT, clarifying that payments to Munshis or Biri workers did not fall under Section 194C. Consequently, penalties under Section 221 read with Section 201(1A) of the IT Act were not applicable, leading to the dismissal of departmental appeals and allowance of the assessee's cross objections. en-us Mon, 18 Jun 1990 00:00:00 +0530 Thu, 28 Jan 2016 11:47:28 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=178099 The Tribunal held that the Biri manufacturing company was not liable to deduct tax under Section 194C of the IT Act for payments to Munshis as the payments were for labor charges and not to contractors directly. The Tribunal's decision aligned with Circular No. 487 issued by the CBDT, clarifying that payments to Munshis or Biri workers did not fall under Section 194C. Consequently, penalties under Section 221 read with Section 201(1A) of the IT Act were not applicable, leading to the dismissal of departmental appeals and allowance of the assessee's cross objections. Case-Laws Income Tax Mon, 18 Jun 1990 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=178099