TaxTMI 
TaxTMI 
2011 (7) TMI 1335
X X X X Extracts X X X X
X X X X Extracts X X X X
....ted 17.12.2009. 2. The only issue in this appeal of the revenue is against the order of CIT(A) deleting disallowance made by AO u/s. 40(a)(ia) of the Act for non-deduction of TDS u/s. 194C of the Act. For this, the revenue has raised following three effective grounds of appeal: "1.That, on the facts and in the circumstances of the case, Ld. CIT(A) has erred in deleting the disallowance made u/s. 40(a)(ia) of the Income-tax Act, 1961. 2.That, on the facts and in the circumstances of the case, Ld. CIT(A) ought to have given recognition to oral contract existing between the assessee and the payees of labour charges so that the payment of labour charges could be held to have attracted TDS provisions u/s. 194C of the Act. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....emain the same. Respectfully following the cited decision, I direct the deletion of this disallowance for this year also. These grounds of appeal are allowed." Aggrieved, now revenue is in appeal before us. 4. At the outset, Ld. Counsel for assessee stated that this issue is squarely covered in favour of assessee and against revenue by Tribunal's decision in assessee's own case in ITA No. 245(Kol) of 2009, Assessment Year 2005-06 dated 9.4.2010, wherein it has been held as under : "5. After hearing the rival submissions and on careful perusal of the material available on record including the ledger copies of the subsequent assessment year ending on 31.03.2006 alongwith ledger copy of 5 Sardars and on careful perusal of the ca....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... by or under a Central, State or Provincial Act; or (d) any company; or (e) any co-operative society; or (f) any authority, constituted in India by or under any law, engaged either for the purpose of dealing with and satisfying the need for housing accommodation or for the purpose of planning, development or improvement of cities, towns and villages, or for both; or (g) any society registered under the Societies Registration Act, 1860 (21 of 1860) or under any law corresponding to that Act in force in any part of India; or (h) any trust; or (i) any university established or incorporated by or under a Central, State or Provincial Act and an institution declared to be a university....
X X X X Extracts X X X X
X X X X Extracts X X X X
....pra that a "contractor" for the purpose of these provisions would be any person who enters into a contract with the Central or any State Government, or any local authority, any corporation established by or under a Central, State or Provincial Act, any company or any co-operative society for carrying on any work including supply of labour for carrying out any work and a "sub-contractor" would mean any person who enters into a contract with the contractor for carrying out, or for the supply of labour for carrying out , the whole or the part of the work undertaken by the contractor under a contract with any of the authorities named above of for supply whether wholly or partly and labour which the contractor has undertaken to supply in terms o....
X X X X Extracts X X X X
X X X X Extracts X X X X
....also supported by the decision of the Punjab & Haryana High Court in CIT -Vs- Esskay Construction Co. supra wherein it was held that once a finding has been recorded that there was no subcontract of work, there could not be any applicability of section 194C(2) of the I.T. Act, 1961. Therefore the ratio laid down in the aforesaid judgment is squarely applicable to the facts of this case. We further find that the assessee has made payments to individual labours, which is evident from the musterroll enclosed in the paper book page 21. We also find from the muster roll that the person signing as Labour Sardar is also included in the serial of the labours. We find that in this case, admittedly, the Labour Sardars in the present case has no locus....