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TMI Blog2013 (2) TMI 232X X X X Extracts X X X X X X X X Extracts X X X X ..... rs and printing presses treating them as contractual payments liable to TDS u/s. 194C of the I.T. Act, 1961 and not sales. 3. In this case, Survey/Inspection was conducted in the case of the assessee on 18.10.2011 during which the Assessing Officer noted that assessee made contract with certain printers/paper setters to do the job work, but has not deducted TDS on the payments made to them. Assessing Officer further noted that assessee did not intimate the name, address, PAN and mode of payment to such parties on the plea that "secrecy of the Board will be disclosed". Assessee stated that setting of question papers and the printing thereof is done by the Confidential Cell of the Board in a very confidential manner and that is why specific ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ersity, Rohtak made TDS on such payments for the job work of printing/ paper settings of various examinations conducted by the University. In view of the above, the Assessing Officer calculated the TDS @ 2% of the payments u/s. 201(1) of the Act and levied interest u/s. 201(1A) of the Act. 4. Upon assessee's appeal Ld. Commissioner of Income Tax (A) noted that the assessee conducts examination for about 13 lacs candidates in each year for various courses offered by it. The setting of question papers and printing thereof is got done by the Board in a very confidential manner for which a specific provision exists in the examination regulation of the Board. That it is for this reason the name, address and payments to printers was not disclose ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cification of a customer by using material purchased from a person, other than such customer." Ld. Commissioner of Income Tax (A) observed that it is seen that the material used for printing the question papers is procured by the printer himself as per the specifications laid down by the assessee. The purchase of pre-printed material from the printer therefore amounts to contract for sale and not 'work' as defined in section 194C(1). 4.2 Ld. Commissioner of Income Tax (A) further referred to the decision of the Hon'ble Punjab & Haryana High Court in the case of C.I.T. vs. Dy. CAO, Markfed 304 ITR 18 and Hon'ble Bombay High Court decision in the case of BDA Ltd. vs. C.I.T. 281 ITR 99. Ld. Commissioner of Income Tax (A) further noted that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed before the Assessing Officer. It has been submitted that such printers have already filed their income tax returns including the payments received from the assessee in their gross receipts. It has further been submitted that all the material used for printing of question papers i.e. HPC 60GSM paper and superior quality of ink, inner and outer envelops, cartons and plastic bags for packing of papers, is managed by the printer himself. After doing the needful, all the boxes containing such question papers are to be sent to the designated head quarters in a confidential manner at the cost and risk of the printers. Therefore, it is submitted that it is the purchase of printed material by the assessee and thus it was a contract for sale by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. Dy. CAO, Markfed (Supra) held that purchase of particular printed packing material by the assessee was a contract for sale and outside the purview of section 194C of the Act. In the case of BDA Ltd. vs. C.I.T., Hon'ble Bombay High Court held that if a manufacturer purchases material on his own and manufactures a product as per the specific requirement of a customer, it is a case of sale and not a contract for carrying out any work. 6.4 We find that the above case laws are applicable to the facts of the case. Accordingly, we do not find any infirmity in the order of the Ld. Commissioner of Income Tax (A) wherein printing of question papers by the assessee from printers was treated as contract for sale and not work contract and therefore, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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