https://www.taxtmi.com/caselaws?id=56453 ITAT held that payments under a turnkey operation-and-maintenance agreement constituted a work contract and were taxable under s.194C (2% TDS), not fees for professional/technical services under s.194J. The tribunal found the AO's classification incorrect and quashed the s.201(1) demand of Rs.50,90,757 for short-deduction of tax. It further cancelled the order because the payee had declared substantial losses and had no tax liability, making the short-deduction demand unjustified. The appeal was allowed and the demands set aside. en-us Mon, 05 May 2003 00:00:00 +0530 Wed, 17 Sep 2025 15:54:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=56453 ITAT held that payments under a turnkey operation-and-maintenance agreement constituted a work contract and were taxable under s.194C (2% TDS), not fees for professional/technical services under s.194J. The tribunal found the AO's classification incorrect and quashed the s.201(1) demand of Rs.50,90,757 for short-deduction of tax. It further cancelled the order because the payee had declared substantial losses and had no tax liability, making the short-deduction demand unjustified. The appeal was allowed and the demands set aside. Case-Laws Income Tax Mon, 05 May 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=56453