1984 (3) TMI 6

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.... the Act against the respondents in the court of the Chief Judicial Magistrate, Shimla, pertaining to different assessment years alleging therein that the respondents had violated the provisions of section 194C of the Act by failing to deduct tax at source out of the payments made by them to certain sub-contractors named in the complaints and had thus rendered themselves liable for punishment under section 276B of the Act. 2. The learned Chief Judicial Magistrate observed that the respondents were not "contractors" nor the persons to whom payments are alleged to have been made by them "sub-contractors" within the meaning of section 194C of the Act and as such they were not required to deduct the amount of tax under section 194C(2) while ....

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....b) any local authority or (c) any corporation established by or under a Central, State or Provincial Act ; or (d) any company; or (e) any co-operative society, shall, at the time of credit of such sum to the account of the contractor or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct an amount equal to two per cent. of such sum as income-tax on income comprised therein. (2) Any person (being a contractor and not being an individual or a Hindu undivided family), responsible for paying any sum to any resident (hereafter in this section referred to as the sub-contractor) in pursuance of a contract with the sub-contractor for ....