Payments were received by the representatives of the labourers who in most cases were employee of the assessee—AO holding that such payments made to Mukadam was nothing but payment made to contractors and since tax was not deducted under s. 194C, orders under s. 201(1) and 201(1A) were passed—AO not justified—As assessee has made payment for labourers but to the representative of the labourers through their Mukadam who are the employees of the assessee, provisions of s. 194C requiring deduction of tax are not applicable

LAXMI PROTEIN PRODUCTS (P) LTD.

ITAT, AHMEDABAD 29 CCH 0122 AhdTrib