2004 (10) TMI 258

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....by the CIT(A) for asst. yr. 2003-04, wherein confirmation of the action of ITO (TDS) in raising demand of Rs. 34,75,447 and in levying interest of Rs. 7,51,621 by way of TDS on purchases of preprinted packing material like tubes, cartons, corrugated boxes, etc. has been opposed. Since these appeals pertain to the same assessee and the issue is common, these were heard together and are being decide....

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....s. 194C of the Act in view of Circular No. 715, dt. 8th Aug., 1995, issued by the Central Board of Direct Taxes, New Delhi. A show-cause notice dt. 22nd Dec., 2003 was, therefore, issued and served upon the assessee to offer its explanation. The assessee was also asked to state as to why action under ss. 201(1) and 201(1A) should not be initiated for non-deduction of TDS under s. 194C of the IT Ac....

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....ied by the suppliers is incidental to the manufacture of the raw materials supplied by the supplier. The payment made to supplier is under a contract of sale it is not a service contract. The assessee used to place purchase order for purchase of the raw materials with printing thereon. The printing of raw materials cannot be segregated as separate contract of printing materials/printed materials. ....

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....ospective. The assessee relied on the decision of Hon'ble Bombay High Court in the case of BDA Ltd. vs. ITO (TDS) in Tax Appeal Nos. 44 of 2003 & 1 of 2004, and submitted that a similar issue has been decided in favour of assessee in that case, wherein supply of printing and packing material to M/s Wadilal Dairy International Ltd. was held to be a contract for sale and not a works contract. On the....