https://www.taxtmi.com/caselaws?id=763526 The ITAT Mumbai reversed the AO's disallowance of crew wages expenses under section 40(a)(ia) for non-deduction of TDS under section 194C(2). The tribunal held that the assessee acted as a contractor providing crew for scrapping activities under a principal-to-principal arrangement, not as a sub-contractor. Since there was no evidence of specific contracts between the assessee and crew workers establishing sub-contractor relationships, and no contractual responsibility was transferred to crew workers, TDS provisions under section 194C(2) were not applicable. The tribunal relied on CBDT Circular No. 715 and precedent from Prashant H. Shah case, concluding that section 40(a)(ia) was incorrectly invoked. en-us Wed, 18 Dec 2024 00:00:00 +0530 Fri, 20 Dec 2024 11:48:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=763526 The ITAT Mumbai reversed the AO's disallowance of crew wages expenses under section 40(a)(ia) for non-deduction of TDS under section 194C(2). The tribunal held that the assessee acted as a contractor providing crew for scrapping activities under a principal-to-principal arrangement, not as a sub-contractor. Since there was no evidence of specific contracts between the assessee and crew workers establishing sub-contractor relationships, and no contractual responsibility was transferred to crew workers, TDS provisions under section 194C(2) were not applicable. The tribunal relied on CBDT Circular No. 715 and precedent from Prashant H. Shah case, concluding that section 40(a)(ia) was incorrectly invoked. Case-Laws Income Tax Wed, 18 Dec 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=763526