Assessee incurred catering expenditure for purpose of supply of food packets to its employees. Assessing Officer held that assessee was liable to deduct TDS under section 194C as this fell under contractual payment and, thus, 30 per cent of catering expenditure was disallowed under section 40(a)(ia). CIT(A) up held the order  of the Assessing Officer.   On appeal the Tribunal held that  case of supply of food packets and same being subjected to GST, same would not be considered as contract and, therefore, provision of section 194C would not apply. Assessee-company paid business promotion expenses to promote business and rewards to employees to achieve work targets. Assessing Officer held that assessee was liable to deduct TDS under section 194C on such expenses. CIT(A) affirmed the order of the Assessing Officer. On appeal the Tribunal held that since facilities/amenities made available by hotel to its customers do not constitute ‘work’ within meaning of section 194C, hotel room booking expenses incurred by assessee were not liable to TDS under section 194C. The assessee was not liable to deduct TDS on business promotion expenses under section 194C  of the Act. (AY. 2011-12)