TRANSWIND INFRASTRUCTURE (P) LTD. Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) Heard learned counsel for the parties for final disposal of the petition. Petitioner has challenged a notice dt. 30-3-2012 as at Annexure A to the petition issued by the respondent-assessing officer under section 148 of the Income Tax Act, 1961. Petitioner is a company registered under the Companies Act. For the assessment year 2007-2008, petitioner filed its return of income on 29-10-2007 declaring total income of Rs. 36,27,970. In such return, the petitioner had claimed labour expenditure of Rs. 9.48 crores (rounded off). As per the petitioner, on the balance labour payment of Rs. 3.05 crores (rounded off), provision of TDS was not applicable and, therefore, no tax was deducted at source.

(2.) Assessing officer framed scrutiny assessment under section 143(2) of the Act. He discarded petitioners contention that TDS was not applicable for the remaining labour charges. He made ad-hoc disallowance of Rs. 25,60,000 at 8% of the total payments in his order of assessment dt. 30-12-2009.

(3.) Petitioner challenged the said disallowance before the Commissioner (Appeals), who, by his order dt. 15-12-2010, deleted such additions on the ground that TDS provision was not applicable. We are informed that the Revenue has filed appeal against such order of Commissioner (Appeals) which is pending before the Tribunal.