TDS u/s. 194C not deductible on capital grant subsidy extended by NHAI: Delhi HC

CIT (TDS)-2 Vs National Highway Authority of India (Delhi High Court) Delhi High Court held that TDS under section 194C of the Income Tax Act not deductible on capital grant subsidy extended by NHAI to the Concessionaire since it cannot be construed as payment made for a work undertaken by the contractor. Facts- The Commissioner of Income Tax (TDS) impugns the judgment rendered by the Income Tax Appellate Tribunal on 10 April 2017 and which has principally held that the capital grant subsidy given by the respondent-assessee to its Concessionaires would not be subject to a withholding tax as co...