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2016 (7) TMI 111 - HC - Income TaxTDS u/s 194C - non deduction of tds on printing charges - whether the assessee was a trader and not a works contractor? - Held that - Liability under Section 194C will arise if he was a contractor. Such liability shall not be there if he was a trader. The learned Tribunal after considering the evidence took a view that the assessee was a trader. That finding is a finding of fact which has become final. It is therefore not possible to find that there has been any lapses or violation on the part of the assessee in not complying with the requirement of Section 194C. Consequently there is no application of Section 40(a)(ia) of the Income Tax Act. - Decided against revenue
Issues:
Interpretation of whether the assessee was a trader or a contractor for tax liability under Section 194C and Section 40(a)(ia) of the Income Tax Act. Analysis: The High Court of Calcutta heard an appeal against a judgment by the Income Tax Appellate Tribunal regarding the assessment year 2005-06. The main issue revolved around the classification of the assessee as a trader or a contractor for tax purposes. The Tribunal had previously determined that the assessee was a trader, not a contractor, based on the evidence presented. This finding was considered final and conclusive. As a result, the liability under Section 194C would not apply if the assessee was classified as a trader. Therefore, the Court concluded that there was no violation on the part of the assessee in complying with the requirements of Section 194C, and consequently, Section 40(a)(ia) of the Income Tax Act would not be applicable. In summary, the Court upheld the Tribunal's decision that the assessee was a trader, not a contractor, based on the evidence presented. This classification determined the tax liability under Section 194C and Section 40(a)(ia) of the Income Tax Act. Since the assessee was found to be a trader, there was no violation of tax provisions, and the appeal was decided in favor of the assessee. The Court ordered that each party would bear their own costs in the matter.
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