When contractor supply any goods as per specification given and delivered to the Govt. than it will be outside the purview of sec 194 C

Last updated: 30 December 2011

Court :
INCOME TAX APPELLATE TRIBUNAL

Brief :
Brief facts of this issue are that while doing the scrutiny assessment, the Assessing Officer has disallowed the disallowance by observing as under:- “On examination of the books of accounts it is observed that no tax on such payment/credit has been deducted at source during the relevant previous year or within the time prescribed u/s.200(1) of the I.T Act’61. Accordingly, the said expenditure on the aforementioned total expenditure to the tune of Rs.64,36,384/- , comprising of sub-contractor payment of Rs.62,06,084/- and ‘Transport Charges” Rs.2,30,300/-, is, therefore, not deductible in computing total income chargeable under the head ‘Profits and gains of business or profession’ as per the provisions of Sec.40(a)(ia) of the I.T Act’61 read with proviso thereto.”

Citation :
Shri Mahavir Singh, Judicial Member.and Shri C.D. Rao, Accountant Member.ITA No. 178/Kol/2010 Assessment Year: 2006-07 Dy. Commissioner of Income-tax Circle-1, urgapur(APPELLANT)-Versus-.M/s. Elgie Engineering Works PAN: AAFE-7976R (RESPONDENT)