2013 (7) TMI 142

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....t nos. 2 and 3. None is present on behalf of respondent no. 4. 2. The petitioner states that it is cooperative society registered under the Cooperative Societies Act, 1912 and since then it is continuously functioning. It is under the control of Central Government through its department of post and telegraphs. 3. Further contention is that the petitioner society has entered into a contract with the department of post and telegraph, under which it manufactures postal seals and stamps. A copy of the contract has been annexed alongwith the writ petition. It is not necessary for us to note the terms and conditions of the said agreement. 4. The petitioner is aggrieved by the deduction of income tax at source. The petitioner has also cha....

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..... Ratan Melting and Wire Industries; 2008(231) ELT 22 (6), he contended that in case a circular is against the statutory provision or a judgment of the Apex Court it can not come to the rescue of the petitioner. 7. During course of argument, learned counsel for the department also placed before us a copy of the order passed by Income Tax Commissioner (TDA), Aligarh dated 17.9.2003 for assessment year 1997-98 to 2002-04 under section 201(a)/104-C (1). Perusal of the aforesaid order shows that the income tax department has held the Superintendent, Postal Stores Form and Seals, Aligarh (Respondent no. 4) as the assessee in default for not deducting the tax at source from the bills of the petitioner during the aforesaid assessment year. 8....

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....ng of section 194 C(i) of the Act. For the said purpose, the provision of agreement are required to be interpreated. A bare perusal of the order dated 17.9.2003 passed by Income Tax Commissioner (TDS), Aligarh shows that there is no application of mind in this regard. 12. As regard the contention of the counsel for the department that the circular is in the teeth of the statutory provision and the Apex Court decision in the case of Associated Cement Co. Ltd Vs. CIT (Supra), we are of the view that the said question is not germane to the controversy in issue. Para 7(vi) (b) of the circular merely clarifies that in case of simple contract relating to "sale of goods", section 194 C will not apply. The said proposition of law cannot be dispu....