TaxTMI 
TaxTMI 
2016 (8) TMI 1036
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....1-12. Since, the facts are identical and issues are common, they are heard together and disposed off, by this common order for the sake of convenience. 2. Brief facts of the case is that the assessee, National Highway Authority of India (NHAI) is an autonomous body created under the NHAI Act, 1988 under the Ministry of Shipping, Road Transport and Highways, to carry out the development and maintenance of Highways across the country. The NHAI, under the aegis of Central Government, develops National Highways on its own or Public Private Partnership and collects user fee from the users of National Highways. As such, the assessee established three Toll Plazas at Singarayakonda for collection of user fee and engaged the services of six agenc....
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....sted the work of Toll Fee collection and the consideration is paid in terms of total salary/wage paid to the number of personal deployed for the work plus 14% service charge on total salary paid to personal. It was further submitted that commission is carved out from the value of transaction, whereas in its case the consideration is paid in terms of salary/wages plus some percentage of service charge on the total salary paid to personnel, therefore it cannot be considered as commission within the meaning of sec. 194H of the Income Tax Act, 1961. 4. The A.O. after considering the explanation of the assessee, held that the services provided by the agencies is in the nature of principle and agent relationship, consequently, any payments mad....
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....t his convenience and left other important aspects of the agreement so as to come to the conclusion that it is a contract for agency and the impugned payments are covered under the provisions of sec. 194H of the Act. It was further submitted that it has engaged the services of agencies to provide manpower for Toll fee collection in designated Toll Plazas of national Highways. As per the terms of agreement, the agencies required to provide as many as required number of persons on their own terms and conditions without any obligation to the NHAI. It is the responsibility of the agencies to appoint their staff and complete the work. The agencies have been paid consideration on the basis of total wages/salary payable to the personnel employed p....
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....authorities below. The Ld. A.R. for the assessee submitted that the issue involved in these appeals is squarely covered by the decision of ITAT, Visakhapatnam bench in assessee's own case for the assessment year 2009-10. We find that the coordinate bench of this Tribunal, in ITA No.69/Vizag/2013 dated 10.6.2016 held that the contract between the assessee and the agencies is a mere contract for supply of labour for execution of work contract as defined under the provisions of section 194C, but not a commission as defined under the provisions of sec. 194H of the Act. The relevant portion of the order is reproduced hereunder: "8. We find force in the arguments of the assesee for the reason that it is a mere contract for supply of labour for....
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....visions of sec. 194H of the Act. It is merely a contract for supply of labour for execution of work contract as defined under sec. 194C, having all the ingredients of a contract of principle to principle basis. The assessee has rightly deducted TDS @ 2.266% under the provisions of sec. 194C of the Act. The A.O. without appreciating the facts simply, held that the payments are in the nature of commission which attracts TDS under sec. 194H. The CIT(A) has rightly deleted the additions. We do not see any error or infirmity in the order of CIT(A). Hence, we inclined to upheld CIT(A) order and reject the appeal filed by the Revenue." 9. Considering the facts and circumstances of the case and also respectfully following the decision of coordin....