2015 (4) TMI 1264

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....lla, senior counsel with Ms. Megha Sharma i/b PDS Legal ORDER P.C. : 1. This appeal of the Revenue challenges the order passed by the Income Tax Appellate Tribunal in two appeals one of which was filed by the assessee and the other by the Revenue. The order is pronounced on 31st October, 2012 and for the assessment year 2007- 08. 2. After having heard the counsel appearing for both sid....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....rred in deleting the short / non deduction of tax by holding that in view of disallowances u/s 40(a)(i) / 40(a)(ia), no demand can be raised u/s 201(1) r.w.s. 194C / 194J of the Act?" 3. Mr. Malhotra, however, would urge that even questions (C) and (D) are substantial questions of law. In that he would urge that there is a distinction on facts from the cases followed and applied by the Tribunal....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Therefore, section 194C of the Income Tax Act, 1961, was applicable. 5. Precisely this question was considered in Glenkmark by the Division Bench. It dealt with the ambit and scope of this section. The argument and question was dealt with in somewhat similar facts. This was also a case of a Pharma company wherein it had an agreement with a third party for manufacture of certain pharmaceutical ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ided for manufacture of the goods and which are eventually sold to the assessee. In these circumstances, we do not see that the transactions partake the character of works contract in any manner. Therefore, the issue or question is covered by Commissioner of Income Tax vs. Glenmark. 6. Equally, question D is not a substantial question of law inasmuch as there as well the same issue was dealt wi....