Section 194C

CIT Vs. Nova Nordisk Pharma India Ltd. (HC of Karnataka) - We find that this is not simply a situation of a product manufactured to the specifications of the assessee, being sold to the assessee at the price fixed by the supplier but this is a situation where a product manufactured out of raw materials supplied by a foreign company who had direct interest in the assessee company so manufactured to the specification of the assessee company utilising the technical know-h.. Full Article

CIT v. Bhagwati Steels -(Punjab & Haryana HC) -In the instant case, it was held that the payment of freight charges by the assessee to the truck drivers was based on individual GRs which represented individual and separate contracts and there was no single contract for carriage or transportation of goods referred to between assessee and the impugned parties which would make the assessee liable for deduction of tax at source under section 194C of the Act. Full Article

SKIL Infrastructure Ltd. Vs. ITO (ITAT Mumbai)- The nature of arrangement entered by the appellant for transportation of its employees between residence to office is similar to the arrangement mentioned in the circular No. 558, dated 28th March 1990, issued by the CBDT regarding the applicability of the provisions of section 194C of the Act to the hire charges paid to bus owners. Apartment from this, other circulars (ie., circular number 681 dated March, 8, 1994, circula.. Full Article

ITO, (TDS) V/s. Indian Oil Corporation (ITAT Delhi) -Bombay High Court in their decision dated 29.6.2007 in Indian National Ship Owners’ Association and Others Vs. CIT (TDS) in CWP no. 400 of 2007 concluded that the provisions of section 194I of the Act are applicable only in respect of rent for land or building (including [...] Full Article

Trade Discount : In the case of S.D. Pharmacy Pvt. Ltd. ITA Nos. 948/Coch/2008, A.Y. 2005-06, dt. 5-5- 2009. It was held that trade discount are not in the nature of commission and hence no TDS is required to be deducted u/s 194H of the act. This was again confirmed in the case of Add CIT v Pearl Bottling (P) Limited. Full Article

ACIT Vs M/s Tube Investments of India Ltd. (ITAT Chennai) - A perusal of the terms and conditions as also the invoices as found in the paper book clearly shows that sales tax and excise duty had been collected on the supply of materials by the vendors to the assessee. In these circumstances, in view of the finding of the Hon'ble Supreme Court in the case of Silver Oak Laboratories P. Ltd. in S.L.P. No. 18012/2009 dated 17-08-2010, referred to supra, we are of the view th.. Full Article

ITO, Bharuch Vs The Ankleshwar Taluka ONGC (ITAT Ahmedabad)- It is pertinent to note that in the assessment order, the AO disallowed the entire payment made to the farmers amounting to Rs.2,57,62,253/- by invoking the provisions of section 40(a)(i) of he IT Act. Apart from this, the AO disallowed Rs. 51,47,250/- under Section 40A(3) of the Act. Thus, the disallowance of Rs.51,47,250/- was made twice i.e. once under Section 40A(3) and then invoking section 40(a(ia). Full Article

ITO Vs Rajesh Kr Garg (ITAT Kolkata) In the present case the claim of the asse see is that at the time of paying the interest to the 34 persons mentioned in the assessment order, he had before him the appropriate declarations in the prescribed form from the payees stating that no tax was payable by them in respect of their total income and therefore tax need not be deducted from interest under section 194A, and in the light of these declarations he had no option but to .. Full Article