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TMI Blog2014 (9) TMI 520X X X X Extracts X X X X X X X X Extracts X X X X ..... as TDS either can be treated as part of the income of the assessee or as representing and relatable to the receipts which are liable to be reckoned in the process of assessment - The amount received by the assessee on account of the TDS came to be treated as part of the commission, which the assessee is entitled to receive under agreement entered into with the subcontractor – it is rightly treated as income for the respective AYs - the assessee obviously is not entitled to the benefit of treating the amounts initially deducted as TDS, as part of the tax paid by the assessee – Decided against assessee. - I. T. T. A. Nos. 24 of 2002 and 52 of 2003. - - - Dated:- 23-7-2014 - Narsimha Reddy And Challa Kodanda Ram,JJ. For the Appellant : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee was entitled only to 2% royalty on the gross receipts. 4) The Assessing Officer initially sought to bring to the tax, the entire turnover relating to the contract, to the extent it was executed by the subcontractors and was also assessed in the hands of the subcontractors, treating the same as the receipts of the assessee. In appeal and further appeals, the issues came to be settled finally by the order dated 29.03.2001 of the Tribunal, whereby the turnover relating to the subcontracts corresponding to the T.D.S amounts were deleted. 5) While passing consequential orders to give effect to the order of the Tribunal, the assessing officer treated the T.D.S amount as income of the assessee and brought the same to tax. Assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e crucial aspect of the matter is that at the time when the amounts were deducted by the principal while making payments to the subcontractors, these amounts were deducted at 2% towards T.D.S under Section 194(C) of the Act. The said deducted amount was given credit to the assessee. On the premise the said amount representing the tax deduction at source at 2%, the assessing officer brought to tax the corresponding turnover representing the T.D.S amount. On appreciation of the facts on record, in particular, the nature of agreement entered into by the assessee with the subcontractor, in the ultimate analysis the turnover relating to the contract executed by the subcontractor was held liable to be deleted. In giving effect to the orders of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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