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TMI Blog2002 (7) TMI 30X X X X Extracts X X X X X X X X Extracts X X X X ..... atch of writ appeals have been filed questioning the orders of the learned single judge, in striking down Circular No. 681, dated March 8, 1994, issued by the Central Board of Direct Taxes on the ground of it being ultra vires section 194C of the Income-tax Act, 1961 (hereinafter referred to as "the Act"). Section 194C of the Act obligates any person paying any amount due to a contractor in pursu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g counsel for income-tax cases, submits that the judgment of the learned single judge is liable to be set aside. But, we do not accede to his contention for the reasons mentioned infra. Section 194C was inserted by the Finance Act, 1972, with effect from April 1, 1972, authorising deduction of income-tax at source, while making payments to contractors for the work done by them. The expression "wo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... High Court. The argument that inasmuch as the Finance Act, 1995, was enacted authorising the deduction even for mere transportation of goods, and as such, the circular is deemed to have been ratified by Parliament is also liable to be rejected, for the reason that the said Finance Act, 1995, which came into effect from July 1, 1995, is only prospective in operation and not retrospective. It is al ..... X X X X Extracts X X X X X X X X Extracts X X X X
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