TaxTMI 
TaxTMI 
TaxTMI 
2017 (4) TMI 1369
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....red by the Department. 3. This Court while admitting the appeals framed the following substantial questions of law:- Appeal No. 363/2011 "Whether on the facts and circumstances of the case the ITAT was justified in law in holding that the payments made by the assessee were not liable to be deducted at source u/s 194C of the Income Tax Act, 1961?" Appeal No. 563/2011 Whether Tribunal was justified in law in directing deletion of interest payable under Section 201 (1A) of the Income Tax Act by the assessee when according to the Revenue, payments in question attracts the provisions of Section 194C of the Act. 4. Counsel for the appellant contended that even if the view taken by the Tribunal is contrary to law, the same is required to....
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....8, dated 20th March, 1973 (F. No. 131(9)/ 73-TPL), in this regard. 4. Some of the issues raised in the above-mentioned circulars need to be reviewed in the light of the judgment dated March 23, 1993, delivered by the Supreme Court of India in Civil Appeal No. 2860(NT) of 1979- Associated Cement Co. Ltd. v. CIT [1993] 201 ITR 435. 5. The Supreme Court has held that ". . . there is nothing in the sub-section which could make us hold that the contract to carry out a work or the contract to supply labour to carry out a work should be confined to ' works contract ' . . .". Their Lordships have further held that " ' Any work ' means any work and not a ' work contract ', which has a special connotation in the tax law . . . ' Work ' envisaged i....
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....pply to all types of contracts for carrying out any work including transport contracts, service contracts, advertisement contracts, broadcasting contracts, telecasting contracts, labour contracts, materials contracts and works contracts. (ii) No deduction at source under section 194C shall be required to be made if the consideration for the contract does not exceed the prescribed amount which at present is Rs. 10,000 (ten thousand only). (iii) The provisions of section 194C would not apply in relation to payments made for hiring or renting of equipments, etc. (iv) The provisions of section 194C would not apply in relation to payments made to banks for discounting bills, collecting/receiving payments through cheques/drafts, opening and....
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....State of Himachal Pradesh v. Associated Hotels of India Ltd. [1972] 29 STC 474, the Supreme Court observed that where the principal objective of work undertaken by the payee of the price is not the transfer of a chattel qua chattel, contract is of work and labour. The test is whether or not the work and labour bestowed end in anything that can properly become the subject of sale ; neither the ownership of the materials nor the value of skill and labour as compared with the value of the materials is conclusive although such matters may be taken into consideration in determining, in the circumstances of a particular case, whether the contract is, in substance, one of work and labour or one for the sale of a chattel. A building contract or a....
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....ome comprised in the payment. (xi) In a case where advance payments are made during the execution of a contract and such payments are to be adjusted at the time of final settlement of accounts, tax will have to be deducted at the time of making advance payments if the total payment is likely to exceed Rs. 10,000. (xii) Where any contractor is the recipient of any amount under a contract but the income of the recipient is not subject to income-tax, such contractor may obtain a certificate from his Assessing Officer under section 194C(4) for receiving payment without deduction of tax at source. (xiii) Every contractor, other than an individual or a HUF, who is responsible for paying any sum to any subcontractor (who is resident in India....
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....lar No. 558, dated 28th March, 1990, is reiterated. 10. It is clarified that this circular explaining the provisions of section 194C will apply with effect from 1st April, 1994. Tax deductions made in accordance with Circulars Nos. 86, 93 and 108 up to 31st March, 1994, will be regarded as compliance of the provisions of section 194C." 6. He also relied upon the judgment of Karnataka High Court in CIT Vs. Karnataka Power Transmission Corporation Ltd., (2012) 208 Taxman 73 (Kar.), and another judgment of Karnataka High Court in CIT Vs. Executive Engineer (2016) 282 CTR (Kar) 318 against which Mr. Mathur, counsel for the respondents submits that SLP No. 4749/2016 is admitted. The order passed in the aforesaid SLP has been shown to us. 6.1....