Tribunal held that , the payments made to the vendors for the work performed by them by deploying semi-skilled personnel did not involve any technical or professional knowledge on their part, and the work could not be brought within the sweep of S. 194J . Therefore the assessee had correctly deducted tax at source on the payment made to the vendors under S. 194C and the disallowance under S. 40(a)(ia) was not attracted. ( AY.2012-13)
ACIT v. WTI Advance Technology Ltd. (2018) 65 ITR 5 (SN) (Mum) (Trib)
S.40(a)(ia):Amounts not deductible – Deduction at source – Payments made to the vendors for the work performed by them by deploying semi-skilled personnel did not involve any technical or professional knowledge on their part, and the work could not be brought within the sweep of S. 194J- Disallowance cannot be made as the assessee correctly deducted the tax at source u/s 194C of the Act .[ S.194C, 194J ]