2017 (12) TMI 1419

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.... HARSHA DEVANI) By this appeal under section 260A of the Income Tax Act, 1961 (hereinafter referred to as the "Act") the appellant has challenged the order dated 16.5.2017 made by the Income Tax Appellate Tribunal, Rajkot Bench, Rajkot (hereinafter referred to as the "Tribunal") in I.T.A. No.421/Rjt/ 2015 by proposing the following question, stated to be a substantial question of law: ....

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.... deduction of tax under section 194C of the Act in respect of payment of labour charges of Rs. 36,25,103/-. The rate of TDS was adopted at 20% in terms of section 206AA of the Act and the total default was worked out at Rs. 36,25,103/- and for this default of non deduction of tax, penalty was levied under section 271C of the Act. 3. The assessee carried the matter in appeal before the Commissio....

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.... 6. Section 194C of the Act provides that any person responsible for paying any sum to any resident for carrying out any work, including supply of labour, in pursuance of a contract between the contractor and specified person shall, at the time of credit of such sum to the account of the contractor or at the time of payment thereof in cash or by issue of a cheque or draft or any other mode, whi....