TaxTMI 
TaxTMI 
2015 (5) TMI 476
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....come-tax Act, 1961 (hereinafter referred to as "the Act") is attracted. 2. The assessee is a State Government undertaking and it is an approved corporation of the Government of Karnataka for executing civil works assigned by the various Government authorities/departments in the State of Karnataka. On November 23, 2011, a survey under section 133A of the Act was conducted in the premises of the assessee to verify the applicability of TDS provisions for the financial year 2008-09 to 2010-11. The assessee produced sample copies of the job work bill and JE bill/voucher against the advance payments to the engineers/task force committee (TFC). The statements of the assistant engineer was recorded on September 5, 2011. The assessing authority on ....
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....nd square meter on fixed price according to the SR rates of the PWD. There was no evidence for individual payments to workers individually and, therefore, the payment to the group leaders constituted payment for execution of work and, therefore, attracted the provisions of section 194C of the Act. Accordingly, the appeal was allowed. The order passed by the Appellate Commissioner was set aside and the order passed by the assessing authority was restored. Aggrieved by the said order, the assessee is in this appeal. 3. Learned counsel for the appellant-corporation assailing the impugned order submits that the advances paid to the engineers are in turn paid to the daily wage labourers through the group leaders and, therefore, the group leader....
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....he group leaders are paid on the basis of the cubic meter, running meter and square meter on the fixed price according to the SR rates of the PWD. As the assessee did not produce any evidence for payments made to the workers individually, the assessing authority as well as the Tribunal were justified in holding that the status of the group leader is that of a contractor and, therefore, no case of interference is made out. 5. From the aforesaid facts and rival contentions it is clear that the assessee is a State Government undertaking. They take up rural developmental construction works directly by eliminating middlemen like contractors and sub-contractors to avoid exploitation of the rural poor, thereby passing on the full worth of money t....