TaxTMI 
TaxTMI 
2021 (11) TMI 1104
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....14-15 respectively. 2. In both these appeals, common issues have been involved, therefore, both were clubbed and heard together and for the sake of convenience, a common order is being passed. 3. For deciding the appeals, we take I. T. A. No. 84/JP/2012 for the assessment year 2013-14 as a lead case wherein the assesses has raised the following grounds of appeal : "1. The learned Commissioner of Income-tax (Appeals) has erred on facts and in law in holding that the assessee is liable to deduct tax at source on payments made to Pearson Education Service Pvt. Ltd. and Computer Software Pvt. Ltd. for supply and installation of computers, commissioning of computer laboratories and technical manpower and to Vimal Electronics for supply and i....
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....ementation of the program through block level offices and School Management Committees. The Rajasthan Council of Elementary Education implemented the Sarva Shiksha Abhiyaan program with the following contractors : (i) M/s. Pearson Education Services Private Ltd., 10, 3rd Main Ashwani Layout, Off Immediate Ring Road, Ejipura Kormargala, Bengal uru-560 047. (ii) M/s. Compucom Software Ltd. : IT-14-15, EPIP, Sitapura, Jaipur- 302 022. Apart from above, the assessee also entered into a contract with M/s. Vimal Electronics for supply and installation of solar photo voltaic panels at the schools. On spot verification of TDS was conducted on the office premises on March 12, 2014. On perusal of the cash book and the information collected, the....
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....softwares and connected accessories. The project is to be maintained on build, own, operate and transfer basis. There is in-built mechanism of providing technical personnel and expertise needed for the successful launch of the project for the next five years. Therefore, a provision of section 194J is applicable and thus, he upheld the order of the Assessing Officer. 7. Aggrieved by the order of the learned Commissioner of Income-tax (Appeals), the assessee has preferred the present appeal before the Income-tax Appellate Tribunal on the grounds mentioned above. 8. We, found perusal of the record that in the first round of litigation, the assessee preferred appeal before the co-ordinate Bench of this Tribunal and co-ordinate Bench vide orde....
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....n working condition of the hardware, software and necessary infrastructure such as UPS, furniture, etc. (c) Stationary and consumables supply. (d) Supply of personnel to manage project as under : One project manager at State level for co-ordination and implementation of the project and to provide monthly feedback. One district co-ordinator at the district level for co-ordination and implementation of the project and to provide monthly feedback. One full time computer assistant to manage schools. (ii) Contract for supply of computer hardware, software and connected accessories to upper primary schools The above order was given to M/s. Conwucom Software Limited, which has given one single bundled contract and the det....
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....oject during the contract period. (d) Related services include as per GCC clauses 8, 9, 10, 11 and 12 and SCC clause 20. 10. From the above terms and conditions, it can be noted that the entire contract is for supply of computer hardware, software, connected accessories, UPS, furniture, stationary, consumables, etc., and this contract is to be carried out by the contract through its own personnel. Thus, it is a simple contract of carrying out a work. Section 194J applies to a person responsible for paying to any resident any sum by way of fees for professional/technical services. In the present case, the contractor has not made available any technical services to the assessee but has only provided the computer hardware, software, e....
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.... only under section 194C. This finding was confirmed by the co-ordinate Bench of the Income-tax Appellate Tribunal. On further appeal, the hon'ble High Court by a elaborate order held as under : "Held, dismissing the appeal, that the contract entered into between the assessee and each of the contractors did not involve supply of professional or technical services at least within the mean ing of section 194J of the Income-tax Act, 1961. Therefore, the considerations paid under the contracts were not for professional or technical services rendered by the contractors to the assessee and section 194J was not applicable. The technical personnel were deployed not for and on behalf of the customer but for and on behalf of the contractor itse....