Dismissing the appeal of the revenue the Court held that ;when purchasing the packing material;right of ownership of packing material was only transferred to assessee only when it was purchased from suppliers .Accordingly not liable to deduct tax at source . (AY. 2008-09)
PCIT v. Shalimar Chemical Works Ltd. (2018) 257 Taxman 590 (Cal.) (HC)
S. 40(a)(ia): Amounts not deductible – Deduction at source – Contractors – Purchase of packing material- Right of ownership of packing material was only transferred to assessee only when it was purchased from suppliers -Not liable to deduct tax at source –No disallowance can be made . [ S.194C ]