2016 (2) TMI 350

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....lidated order. 2. Since issue and facts for all the appeals are common, for the sake of brevity we are dealing with the appeal pertaining to assessment year 2003-04 to avoid repetition of amount and tax involved. The only issue urged by the revenue is whether ld.CIT(A) was right in law in holding that the assessee is not liable to deduct tax at source u/s 194C of the Act in respect of contract manufacturing. 3. The facts of the case are that the assessee is engaged in the business of purchases and sale of pharmaceutical products. A survey u/s 133A of the Income Tax Act, 1961 was conducted at the business premises of the assessee on 22.3.2006. During the course of survey operation, the AO observed that there was discrepancy in deductio....

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.... CIT(A) that the recipient of the payment has paid the taxes on its receipts and they have filed return of income showing receipts accordingly. With regard to the interest issue, the assessee submitted that it is a consequential in nature. Since the provisions of section 194C of the Act are not attracted, this issue does not have legs to stand on its own. In support of this contention, the ld.AR relied on the decision in CIT V/s Silver Oak Laboratories Pvt. Ltd (SLP No.18012/2009). 5. The ld. CIT(A) after considering the facts of the case and nature of payment including the contract documents and the decision relied upon by the assessee, allowed the claim of the assessee and granted relief. Aggrieved by the decision of the ld. CIT(A), th....