TaxTMI 
TaxTMI 
2017 (2) TMI 731
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....6/VIZ/2013 2. Facts of the case, in brief, are that assessee - Oil and Natural Gas Corporation Ltd. is a company engaged in exploration and production of oil and natural gas in K.G. Basin. The assessee filed its TDS returns with ITO (TDS), Rajahmundry. A TDS survey was conducted on 30/01/2009 in the premises of the assessee-company at Rajahmundry to verify whether assessee is complying with the TDS provisions or not. During the course of survey, it was noticed that the assessee had made the following payments, on which TDS attracts:- a) Royalty b) Work over operations c) Transport expenses d) Repair and Maintenance e) Other contractual payments The Assessing Officer has noted from the infor....
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.... exploit natural hydrocarbon in the form of oil and gas. All these operations are done by the ONGC by hiring services of various concerns by entering into agreements for a specific period. 3. The Assessing Officer, by considering the agreement, observed that work over operations carried on by the assessee, it can be said that the payments made are only towards hiring of services, machinery, plant, equipment, furniture, fittings etc. and the assessee is liable to make TDS under the provisions of section 194-I and not under the provisions of section 194C. 4. So far as transport expenses are concerned, the Assessing Officer observed that the payments are in the nature of hire payments. This scope of work is lifting and transportation of ....
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....case of Hindustan Coca Cola Beverage (P) Ltd. v. CIT [293 ITR 226 (SC)], it is hereby held that the appellant is not liable for any demand under section 201(1) in those cases of nondeduction and sort deduction of tax at source wherever he has shown that the payee has filed the income tax return declaring the receipts from the appellant as its income and paid taxes thereon appropriately." Accordingly, he directed the Assessing Officer to examine the records of the payees with respect to filing of income tax returns showing the receipt of income from the assessee and allow relief in all those cases where the return of the payees showing the income from the assessee is filed and taxes are paid. 6. On being aggrieved, the assessee carried th....
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....perations, transport expenses. The Assessing Officer was of the opinion that the assessee has to be deducted TDS under the provisions of section 194-I, but the assessee‟s contention is to deduct TDS by 194C and not under section 194-I. When this appeal came up for hearing before the Commissioner of Income Tax (Appeals), the Commissioner of Income Tax (Appeals) without adjudicating merits of the case, directed the Assessing Officer to follow the decision of the Hon'ble Supreme Court in the case of Hindustan Coca Cola Beverage (P) Ltd. (supra). We find that the Commissioner of Income Tax (Appeals) has not considered the ground No.2 raised by the assessee, he only considered the alternative plea and remanded the matter back to the fi....