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TMI Blog2016 (8) TMI 77X X X X Extracts X X X X X X X X Extracts X X X X ..... out of a contract for carrying out certain items of work while the latter arises out of services rendered. In the case on hand, even according to the Assessing Officer, the contract was for operation and maintenance of the power plant. This is why the Assessing Officer had to concede that the payments made by the respondent/assessee comprised of different categories and that only some of them rela ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... its Profit Loss Account with an amount of ₹ 11,07,26,520/- towards operation and maintenance charges and a sum of ₹ 9,44,32,957/- towards repairs for maintenance of plant and machinery. These payments were obviously made pursuant to an agreement that respondent/assessee had with APGENCO, dated 25.03.2006, for operation and maintenance of power plants. The Assessing Officer treate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... PGENCO was for the operation and maintenance of the power plant. This contract was actually termed as a contract for work. But what the Assessing Officer held, as seen from para-7 of his order dated 31.03.2011, was that the Articles of Agreement between the respondent/assessee and APGENCO contain different obligations. Therefore, the Assessing Officer proceeded on the footing that there are differ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ulated thereunder shall be deducted towards income tax at source. The essential ingredients of sub-section (1) of Section 194C are 1) there must be an obligation upon the person to whom payment is liable to be made, to carryout any work including supply of labour; and 2) the obligation should arise out of a contract between the contractor and the other person. Insofar as Section 194J is concern ..... X X X X Extracts X X X X X X X X Extracts X X X X
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