Provisions of section 194C will not apply in a case where the invoices clearly show that sales tax and excise duty were collected on the supply of materials by the vendors

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 Honourable 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 that the transaction involved in the present case is a contract for sale and not a contract for carrying out any works.

In the circumstances, respectfully following the principles as laid down by the Hon’ble Supreme Court in the case of Silver Oak Laboratories P. Ltd., referred to supra, the finding of the learned CIT(A) on this issue stands confirmed. In the circumstances, the appeal of the Revenue is dismissed.

The Assistant Commissioner of Income Tax v. M/s. Tube Investments of India Ltd.

ITAT Chennai

I.T.A. No. 1560/Mds/2007

Assessment Year: 2005-06

ORDER

PER GEORGE MATHAN, JUDICIAL MEMBER:

This is an appeal filed by the Revenue against the order of the learned CIT(Appeals)-IV, Chennai in appeal No. CIT(A)-IV/CHE/634/06-07 dated 06-03- 2007 for the assessment year 2005-06.