2021 (2) TMI 758

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....ns to the Assessment year 2011-12. The appeal was admitted by a Bench of this Court vide order dated 31.10.2017 on the following substantial question of law: "Whether on the facts and circumstances of the case, the Tribunal is right in law in holding that the assessee is not liable to deduct tax on payments made to M/s. Karnataka Board and M/s. Rites Ltd for rendering of services in connection with construction of Engineering and Polytechnic college Buildings in the State of Karnataka even when the nature of the relationship between assessee and said parties are in nature of contractor/contractee as per agreement of DTE with KHB & Rites, the work entrusted by them is not merely consultancy but overall responsibility of construction....

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....ner of Income-tax passed an order under Section 201(1) of the Act and held that since the assessee had failed to deduct the tax as required under Section 194C of the Act, the assessee was treated as an assessee in default and it was held that the assessee is liable to pay Rs. 1,79,76,000/-. The demand notice was issued accordingly. 3. The assessee thereupon filed an appeal before the Commissioner of Income Tax (Appeals), who by an order dated 28.10.2014, allowed the appeal preferred by the assessee. The aforesaid order was challenged by the revenue before the Tribunal. The Tribunal, by an order dated 20.05.2016, dismissed the appeal preferred by the revenue. In the aforesaid factual background, the revenue has filed this appeal. 4. Le....