In BDA Ltd vs. ITO (TDS) (2006) 281 ITR 99 (Bom) the tax deduction towards payment for getting printed labels was discussed. The court held that the assessee gave an order for printing labels and it is a contract of sale and is not a ‘works contract’ and hence is not liable for tax deduction under section 194 C. Similar decision was rendered by Delhi High Court in CIT vs. Dabur India Ltd (2006) 283 ITR 197.
