1

Commissioner (A) is not empowered to enhance income a new source of income vide 82ITR 9Trib) 176
1

It is assessee’s choice to select a method for determining FMV of shares vide 81 ITR (Trib) (SN) 78
1

No TP adjustment of trade receivables in case of a debt-free company vide 81ITR (Trib) (SN) 94
1

To accord registration as a charitable institution under income tax dominant purpose must be charitable and satisfies the conditions laid down us 2(15) vide 426ITR108 despite having non charitable ancillary objects meant to achieve the dominant purpose
1

Transactions with dubious entities is reason enough for case reopening vide 421ITR624

Deduction of tax at source Packing Material Purchase

ByCA Gopal Nathani

Sep 2, 2020

The Pune Bench of the ITAT in the case of Wadilal Dairy International Ltd. ACIT (2001) 118TAX141 held that where the main object in buying packing material was to obtain goods for the purpose of packing and the fact that incidentally some printing was required to be done by the supplier was of no consequence in the discharge of obligations for tax deduction at source u/s 194C of the Income tax Act, 1961. Thus in order to judge one’s obligations for deduction it is desired to know the substance of the contract. In this case the Bench noted that the bill contained sales tax and excise duties being indicative of the fact that the transaction is in the nature of sale rather than in the nature of contract for work for the purpose of section 194C of the Income tax Act, 1961.