COMMISSIONER OF INCOME TAX,BANGALORE Vs. BANGALORE DISTRICT CO-OPERATIVE MILK PRODUCERS SOCIETIES UNION LTD.,BANGALORE

JUDGEMENT

(1.) The respondent-assessee is a milk producers society. The respondent invited tenders for supply of sachets of specification to the effect that sachets should have emblem, logo, name, quantity and price etc., printed on the sachets. The successful tenderers supplied sachets according to the specifications. The assessee has filed the return for the assessment years 1999-2000 to 2004-05 in respect of which the present appeals have arised. The A.O. has found that the supply of sachets by the successful tenderers was in the nature of "works contract" and TDS should have been deducted. Thus, called upon the assessee to pay the TDS amount. The Commissioner of Income Tax, (Appeals) confirmed the order of the A.O. The Appellate Tribunal held that the transaction is not "works contract" and purchase of materials and hence deduction of TDS does not arise. The Revenue aggrieved by the said orders, has filed these appeals.

(2.) Sri Indira Kumar, learned counsel for the appellants relied upon the decision of the Supreme Court in the case of State of Tamilnadu Vs. Anandam Viswanatghan : 73 STC 1 In pages 13 and 14, the following observations are made to bring home the point as to whether the transaction amounts to 'works contract' or 'sale'.

(3.) The counsel for the appellants also referred to Circular No. 715 dated 8th August, 1995 issued by the Central Board of Direct Taxes (CBDT) wherein the question No. 15 is answered which reads as follows:-