Dismissing the appeal of the revenue the Court held that;payment of labour charges through labour contractor as there was no contract between assessee and sub-contractor therefore the assessee is not liable to deduct tax at source hence no disallowance can be made .(AY.2007 -08)
PCIT v. Swastik Construction. (2018) 407 ITR 42 (Guj) (HC)
S.40(a)(ia):Amounts not deductible – Deduction at source –
Payment of labour charges through labour contractor — No contract between assessee and sub-contractor — Not liable to deduct tax at source-No disallowance can be made .[ S.194C ]