IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HON'BLE THE ACTING CHIEF JUSTICE MR.P.R.RAMAN & THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR THURSDAY, THE 11TH MARCH 2010 / 20TH PHALGUNA 1931 ITA.No. 71 of 2010() -------------------- ITA.231/COCH/2009 of I.T.A.TRIBUNAL,COCHIN BENCH .................... APPELLANT/RESPONDENT ---------------------------------------- THE COMMISSIONER OF INCOME TAX (TDS), COCHIN. BY ADV. SRI.JOSE JOSEPH, SC, FOR INCOME TAX RESPONDENT/APPELLANT ------------------------ M/S.KENT CONSTRUCTIONS PVT.LTD., ERNAKULAM. THIS INCOME TAX APPEAL HAVING COME UP FOR ADMISSION ON 11/03/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: P.R.RAMAN, AG. C.J. & C.N.RAMACHANDRAN NAIR, J. .................................................................... I.T. Appeal No.71 of 2010 .................................................................... Dated this the 11th day of March, 2010. JUDGMENT Raman, Ag. C.J. This is an appeal filed under Section 260A of the Income Tax Act as per which there should be a substantial question of law. The question in this case is as to whether the TDS should be deducted at 1% or at 2%. In this case the contractor deducted TDS at 1% on the plea that the payments were in the nature of sub-contract payments. Only after referring to the contract entered into by the assessee with the purchasers it could be said whether it is in the nature of sub-contract or not. The fact finding authority found that it is only a sub-contract. True, in the subsequent years the tax might have been deducted at 2%. But then, for the purpose of assessment, each year has to be taken separately. In this case in view of the finding entered by the Tribunal after interpreting the particular agreement in question, we do not find that there is any substantial question of law. Merely because the interpretation is wrong, that by itself will not lead to a substantial 2 question of law. The question being one of interpretation of the agreement and the authorities having taken a view, we do not find any substantial question of law. Appeal is, therefore, dismissed. P.R.RAMAN Acting Chief Justice C.N.RAMACHANDRAN NAIR Judge pms