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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.

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