2019 (4) TMI 405

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..../206C(7) of the Income Tax Act, 1961 on account of non deduction of TDS u/s 194C of the Income Tax Act, 1961. 2. That under the facts and circumstances of the case and in law, on the basis of explanation, documents/evidences furnished before, both the lower authorities have failed to understand the nature of transaction carried out by the assessee with RITES which are outside the purview of Section 194C of Income Tax Act, 1961. 3. That without prejudice under the facts and circumstances of the case and in law, TDS provisions have been properly complied with by the appellant. 4. That no proper and reasonable opportunity of being heard has been provided by the lower authorities. The appellant craves leave to add, alter, amend or vary ....

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....vide any evidence. 5. Aggrieved by order of Ld.CIT (A), assessee is in appeal before us now. 6. Ld.AR submitted that sum of Rs. 10,00,00,000/- paid by assessee to RIETS are in the nature of advance in the hands of recipient. It was submitted that RIETS has acted as mere pass through entity in this regard, inasmuch as the said amount was paid by RIETS to contractor's who were engaged by it on which RIETS deducted TDS at applicable rates. It was thus submitted that assessee cannot be held liable to deduct tax at source under section 194C of the Act on payments made to RIETS. He placed reliance upon decision of Hon'ble Supreme Court in case of Hindustan Coca-Cola beverages Ltd vs CIT reported in (2007) 293 ITR 226, wherein it was held that a....