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2015 (8) TMI 80 - ITAT JAIPURLiability to deduct tax at source - @ 1% or 2% u/s 194C - whether payments made by the assessee to M/s. Max Logistics (P) Ltd. treating it as a subcontractor instead of contractor - Held that:- The nature should not merely be decided on the basis of book entries or use of common terminology. The word ‘Custodian’ is used in the public notice is emphasized by ld. AO to hold that there is no contract between custom and assessee. On reading of the above mentioned clauses, the public notice gives a clear indication that the assessee was in charge of handling of the cargo as sole assignee which in the notice has been referred to as custodian. The purposive reading of terms we hold that the assessee was acting as a contractor for the Commissioner of Customs in this behalf. In order to efficiently discharge its contractual obligation, the eligible assessee further assigned the work to M/s. Max Logistic (P) Ltd. as per their agreement. In consideration of entirety of facts and circumstances we are of the view that the M/s. Max Logistic (P) Ltd. with assessee was that of a sub-contractor. This being so, the TDS liability of the assessee in terms of Section 194C is exigible @ 1% which has rightly been upheld by the ld. CIT(A). Hence, we find no infirmity in order of the ld. CIT(A) which is upheld. - Decided against revenue.
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