The Commissioner Of Income Tax v. Kajaria Ceramics Ltd.through

$~R-85 *IN THE HIGH COURT OF DELHI AT NEW DELHI+ITA No. 411/2005 THE COMMISSIONER OF INCOME TAX..... AppellantThrough:Mr. Rahul Kaushik, Senior StandingCounsel for the Income TaxDepartment. versus KAJARIA CERAMICS LTD.Through: ..... Respondent Mr. Prakash Kumar, Advocate. CORAM:JUSTICE S. MURALIDHARJUSTICE PRATHIBA M. SINGH % O R D E R28.08.2017 1. The Revenue is in appeal against an order dated 26[th]August 2004 passed by the Income Tax Appellate Tribunal (‘ITAT’) in ITA No. 4748/Del/2000for the Assessment Year (‘AY’) 1998-99. 2. While admitting this appeal on 25[th]October 2005, the following question of law was framed for consideration: “Whether the ITAT was correct in holding that Section 194 Cof the Income Tax Act, 1961was not applicable to the paymentsmade by the assessee for purchase of corrugated boxes as perthe assessee's specification?” 3. This Court, in its decision in Commissioner of Income Tax v. DaburIndia Limited [2006] 283 ITR 197 (Del) held that printing of labels oncorrugated boxes did not require any specialized skill and the underlying object of the contract was for sale of goods which took it out of the purviewof the Section 194C of the Income Tax Act, 1961 (‘Act’). 4. In that view of the matter, the question framed is answered in theaffirmative, i.e. in favour of the Assessee and against the Revenue. 5. This appeal is, accordingly, dismissed. S. MURALIDHAR, J. AUGUST 28, 2017j PRATHIBA M. SINGH, J.