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TMI Blog2013 (10) TMI 376X X X X Extracts X X X X X X X X Extracts X X X X ..... cts of the case are that the assessee is a contractor engaged in the civil construction and electrical installation on the basis of turnkey project system involving specialized work. During the assessment year under consideration, the assessee has undertaken work of scientific convention centre at Lucknow. During scrutiny, the Assessing Officer observed that a sum of Rs.3,98,020/-, has been shown as liability of TDS in the balance-sheet. The TDS was deducted against the payment made to the sub-contractor for various work undertaken from them which interalia includes the supply of material as well as other work executed by the sub-contractor. The Assessing Officer has also opined in his order that TDS was not paid within prescribed time limi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d counsel also submits that a sum aggregate to Rs.2,01,09,049/- had been made for purchase of material, which was accounted on different dates prior to March, 2005. He read out Section 40(a)(ia) of the Income Tax Act. On reproduction, it reads as under:- "Section 40(a)(ia)-any interest, commission or brokerage, rent royalty fees for professional services or fees for technical services payable to a resident, or amounts payable to a contractor or sub-contractor, being resident, for carrying out any work (including supply of labour for carrying out any work), on which tax is deductible at source under Chapter XVII-B and such tax has not been deducted or, after deduction, has not been paid on or before the due date specified in sub-section (1) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be inaugurated by the Hon'ble President of India on 19.12.2004. Hence, timely execution of the work was ensured. So, the assessee tied up with the established suppliers for procurement of material, which included supply and installation at site of elevators, furnishing material, fire fighting and fire detection system, air conditioning, etc. The arrangements with them was to supply the customized equipment and installation thereof at the site. So, the involvement of labour was only constituted a negligible part of the overall cost and the same was incidental to supply of goods. On such payments, no tax is deductible. According to the learned counsel, the payment came to be reported in the Tax Audit Report under Section 44AB. He also submit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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