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TMI Blog2017 (5) TMI 1512X X X X Extracts X X X X X X X X Extracts X X X X ..... sed the order on the basis on assumptions without disproving the facts reported by the assessee that no payment to the contractors was made. Therefore, we do not find any infirmity or illegality in the order passed by the learned CIT(A). - Decided against revenue. X X X X Extracts X X X X X X X X Extracts X X X X ..... -. As the appellant has not made available the PAN of the labour contractors, the rate of TDS was adopted at 20% and the total default was worked out at ₹ 36,25,103/-. Further, interest payable @ 1% of the above defaults, for 36 months was worked out at ₹ 13,05,037/-. Thus the total TDS default was computed at ₹ 49,30,140/-. 4. Appellant contention was that in case of the appellant, the survey u/s. 133A carried out on 18/02/2014 at the business premises of the assessee an show cause notice issued u/s. 201(1)/(IA). After considering reply of the appellant and with a single hearing of just 20 minutes, the learned AO decided matter and made huge addition of ₹ 1,81,25,214/- on account of non deduction of TDS on labour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o allotting some works to sub contractors (on payment to whom TDS is duly deducted and paid). The labourers mass may also be fetched from that source after completion of their work. • Due to high social and business involvements of the partners, they remains continuouslv in touch with the other contractors who can be a helping hand to reach to the labourers. • Many of the old labourers approach the firms supervisors for work. • Labourers internally pass on the information about availability of work in their family and groups. • TDS liability does not attach itself to every payment. Only those payments which are specifically covered by the ACT are liable for tax deduction at source. • The payment made to ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t have made payment to the labourers through labour contractor". There is gist of all of the presumption made by the AO in Para 5.1 of the order although the AO has not provided any name of labour contractor. Even nothing adverse in this regard was found during survey. The law does not permit to invoke provisions of law simply on presumption and assumption. Therefore, the TDS liability was cancelled by the learned CIT(A). 8. We have gone through the relevant record and impugned order, Section 194(c) presupposes existence of a payer and payee. We find that in the case of the assessee identity of payee was not established at all. When the contractors are not identifiable at all and also not identified by the Department even otherwise the que ..... X X X X Extracts X X X X X X X X Extracts X X X X
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