2015 (6) TMI 475

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....mar: 1. These four appeals, filed by the assessee, are directed against the consolidated order dated 31st October 2014 in the matter of tax withholding demand raised on the assessee under section 201(1) and 201(1A) r.w.s. 194C of the Income Tax Act 1961, for the assessment years 2007-08, 2008-09, 2009-10 and 2010-11. As all these appeals arise out of common set of facts, deal with a common lega....

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....pipe lines, water supply lines made to Punjab Water Supply & Sewerage Board, for work undertaken as entrusted by statutory law, was in pursuance of a contract and therefore, liable to deduction of tax at source u/s. 194C. 3. That in the facts and circumstances of the case, even the levy of interest u/s. 201(1A) was not sustainable. 4. That the orders and findings of authorities below, to the....

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....roceeding on the basis that the  assessee was under an obligation, under section 194C, to deduct tax at source from these payments, that demands under section 201(1) and 201(1A) r.w.s. 194C were raised on the assessee. Aggrieved assessee carried the matter in appeal before the CIT(A)but not with complete success. While learned CIT(A) upheld the action of the Assessing Officer in principle, he....

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...." that the provisions of section 194C come into play. The contract may be oral or written, express or implied but there must be a contract nevertheless. In the present case, however, the payment is on account of legal obligation under section 24(1) of the Punjab Water Supply and Sewerage Board Act 1976 which provides as follows : "24(1). The cost of investigation, preparation and execution of a....