Sec. 194C applies only if there exist a contractual arrangement between parties

Brief Facts of the Case- Assessee made payment to Punjab Water Supply & Sewerage Board (‘Board’)for laying of sewerage pipe lines & water supply lines on account of legal obligation under section 24(1) of the Punjab Water Supply and Sewerage Board Act, 1976 in each of F.Y. 2006-07, 2007-08, 2008-09 and 2009-10. Contention of Revenue– Payment on account of financial transactions bounded by statute for laying of sewerage pipe lines, water supply lines made to Board, for work undertaken as entrusted by statutory law, was in pursuance of a contract and therefore, liable to deduct...