Dismissed

Commissioner of Income Tax, Chd v. Executive Engineer Contruction Division

Punjab & Haryana HC9 Nov 2011ITA/832/2010

Case brief

AI extract

What is this about?

The High Court dismissed the appeal arising from ITAT orders regarding TDS on electric line contracts. The court found no substantial question of law arising as the Tribunal correctly held that tax was not deductible for the material supply portion of a composite contract, but only for the erection portion.

What did the court decide?

High Court dismissed the appeal against the ITAT order.

Commissioner of Income Tax, Chd Vs… — Contract and Commercial Disputes | Punjab & Haryana HC (2011)

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ITA No.832 of 2010

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IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

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ITA No.832 of 2010 (O & M)

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The Commissioner of Income Tax (TDS), Chandigarh

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Vs.

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Executive Engineer Construction Division (Now Deputy General Manager), Works Division, Operation Circle, DHBVN, M.G. Road, Gurgaon

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The Commissioner of Income Tax (TDS), Chandigarh

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Vs.

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Executive Engineer Construction Division (Now Deputy General Manager), Works Division, Operation Circle, DHBVN, M.G. Road, Gurgaon

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….Respondent

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ITA No.834 of 2010 (O & M)

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The Commissioner of Income Tax (TDS), Chandigarh

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Vs.

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Executive Engineer Construction Division (Now Deputy General Manager), Works Division, Operation Circle, DHBVN, M.G. Road, Gurgaon

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….Respondent

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ITA No.835 of 2010 (O & M)

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The Commissioner of Income Tax (TDS), Chandigarh

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….Appellant Vs.

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Executive Engineer Construction Division (Now Deputy General Manager), Works Division, Operation Circle, DHBVN, M.G. Road, Gurgaon

….Respondent

ITA No.832 of 2010

CORAM: HON’BLE MR.JUSTICE HEMANT GUPTA HON’BLE MR.JUSTICE G.S.SANDHAWALIA

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Present: Mr.Yogesh Putney, Advocate for the appellant.

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HEMANT GUPTA J. (ORAL)

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This order shall dispose of ITA Nos.832 of 2010, 833 of 2010, 834 of 2010 and 835 of 2010 arising out of order passed by Income Tax Appellate Tribunal, Delhi Bench in ITA No 4750/DEL/2009 for the assessment year 2006-07; ITA No.4751/DEL/2009 for the assessment year 2007-08; ITA No.4752/DEL/2009 for the assessment year 2008-09; and ITA No 4749/DEL/2009 for the assessment year 2005-06.

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The Revenue has claimed the following substantial question of

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law:

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“Whether on the facts and circumstances of the case, the Ld. ITAT has rightly upheld the order of the CIT(A) deleting the demand raised for Non-deduction of TDS on the whole payments of the contract work done including execution of work and the contract supply of material being part of the same contract with the same contractors as required u/s 194C of the I.T. Act, 1961.”

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The assessee awarded contract to different contractors the work of erection of 33 KV electric lines/sub-stations including the work of laying poles and electric wires. The contract in question was a composite contract for erection of the transmission lines and for supply of material.

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The learned Income Tax Appellate Tribunal has recorded a finding of fact that the agreement was split into two parts – one for supply of material as per the specifications and other for erection of the same. The learned Tribunal returned a finding that tax was required to be deducted only from that part of the contract which dealt with erection of the

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ITA No.832 of 2010

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transmission lines falling within the scope of Section 194C of the Income Tax Act. 1961.

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It is finding of fact that the contract was composite contract consisting of two parts – one for the supply of material and another for erection of electric poles. Therefore, no tax was required to deducted in respect of the contract for the purchase of material. In view of the said fact, we do not find any substantial question of law arises for consideration of this Court.

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Dismissed.

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(HEMANT GUPTA) JUDGE

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(G.S.SANDHAWALIA) 09.11.2011 JUDGE Sailesh/vimal

Commissioner of Income Tax, Chd v. Executive Engineer Contruction Division

Case brief

What is this about?

What did the court decide?

Commissioner of Income Tax, Chd v. Executive Engineer Contruction Division

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

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