2014 (8) TMI 113

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ing charges paid for carrying out the work covered u/s. 194C, specifically when there was no contract for subcontract between appellant and the payees. 2. On the facts and circumstances of the case, the learned Commissioner of Income-tax (Appeals) erred in disallowing the total amount on which no TDS was deducted instead of amounts payable as at 31-3-2009 amounting to Rs. 2,13,28,310 as required by Section 40a(ia). 3. On the facts and circumstances of the case, the learned Commissioner of Income-tax (Appeals) erred in upholding adhoc disallowance of Rs. 8,134/- being 10% of Mobile expenses. 4. On the facts and circumstances of the case, the learned Commissioner of Income-tax (Appeals) erred in upholding adhoc disallowance of Rs. 7,0861- ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... assessee has deducted tax only on the labour charges paid amounting to Rs. 13.84 crores. The TDS amount was Rs. 15.68 lakhs. The assessee was asked to justify why TDS was not made on the entire labour charges paid amounting to Rs. 24.36 crores. The assessee contended that all the labour charges paid were not liable for deduction of TDS as the amount under this head also included 50 to 65% on account of materials involved in the contract work. The AO did not accept this submission of the assessee. The AO went on to disallow the labour charges on which no tax was deducted at source. 4.1. The disallowance was at Rs. 10.51 crores. The AO further disallowed 10% out of Mobile expenses amounting to Rs. 8,134/- and 10% out of vehicle expenses amo....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... wherein we find that labour charges have been paid to 113 parties. The assessee has also given the details in respect of those parties where no tax was deducted at source. The AO has disallowed labour charges of which no tax was deducted at source in a summary manner without giving any specific finding or pointing out how the provisions of Sec. 194C apply on these payments which also included purchase of material. In our considered view, this issue needs re-verification. We, therefore, restore this issue to the file of the AO. The AO is directed to decide this issue afresh in the light of the provisions of Sec. 194C of the Act considering the details furnished by the assessee after giving a reasonable and sufficient opportunity of being he....