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2018 (5) TMI 711 - ITAT VISAKHAPATNAMTDS u/s 194C - assessee has purchased packing material and supplier has supplied the material with trade name, logo, particulars of product and other information - disallowance u/s 40(a)(ia) - works contract or only contract for sale - Held that:- Circular No.681 of CBDT very clearly specified that contract for sale would not cover the provisions u/s 194C of the Act. As D.R. referred one of the purchase bills furnished in the paper book and argued that the assessee has not paid any CST or VAT and the same was in the nature of supply contract, the amount of the bill was marginal and all the remaining sample bills enclosed in the paper book proves that the transactions were sale transactions and the assessee has paid CST and sales tax on all the purchase bills. The case was scrutinized twice once at the time assessment u/s 143(3) r.w.s 153A and second time in giving effect to the Ld.CIT (C) order but no other evidence was brought on record to show that the same is works contract. Therefore, we hold that there is no works contract involved in supply of printed material and the assessee’s case is squarely covered by the decision of Chandana Brothers cited (2010 (12) TMI 1293 - ITAT VISAKHAPATNAM) and CIT Vs. Dabur India Limited (2005 (8) TMI 65 - DELHI High Court) and no disallowance is called for u/s 40(a)(ia) of the Act. - Decided in favour of assessee.
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