2018 (8) TMI 719

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....jay Kumar) This appeal by the Revenue under Section 260-A of the Income Tax Act, 1961 (for short, Act of 1961), arises out of the order dated 19.04.2017 passed by the ITAT, Visakhapatnam Bench, in ITA No.305/VIZ/2016, in relation to the assessment year 2007-2008. 2. The substantial question of law sought to be raised by the Revenue reads as under: " Whether on the facts and in the circums....

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....of labour charges and sales commission by the Assessing Officer under Section 40(a)(ia) of the Act of 1961. 4. The Tribunal relied upon the earlier decision of a Special Bench of the Tribunal at Visakhapatnam in Merylin Shipping & Transporters V/s ACIT 136 ITD 23 (Tri-SB-Vizag) and held that such disallowance could not be sustained if the expenditure was incurred within the end of the financial....

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....ot only those cases where the amount is payable but also when it is paid. The Supreme Court further pointed out that Section 194C mandates a person to deduct tax at source not only on the amounts payable but also when the sums are actually paid to the contractor, and any person who does not adhere to such a statutory obligation has to suffer the consequences stipulated in the Act of 1961. 7.....