2008 (12) TMI 36 - HC - Income Tax

Assessee is a Government undertaking - AO created a demand, on the allegation that the assessee failed to make deductions at source in respect of payments made towards transportation and other charges - Tribunal rightly set aside the same on the ground that the payments made were not on behalf of the assessee but were part of cost of procurement of wheat and thus, provision for deduction at source was not applicable no substantial question of law arises revenue s appeal is dismissed

Summary

The High Court Punjab and Haryana dismissed the revenue's appeal under Section 260A of the Income Tax Act, 1961. The Tribunal ruled that provisions of sections 194A, 194I, and 194C were not applicable as the payments made were part of the cost of procurement, not separate expenses. The appeal was dismissed as no substantial question of law arose for consideration.