THE ASSOCIATED CEMENT COMPANY LTD. vs THE COMMISSIONER OF INCOME TAX

The Supreme Court held that the term 'any work' under Section 194C(1) of the Income Tax Act, 1961, is broad and not limited to 'works contracts'. The Court clarified that the liability to deduct tax at the rate of two percent applies to payments made to contractors for any work performed, irrespective of whether it constitutes the contractor's income component. The appeal was dismissed, affirming the High Court's decision that the appellant's non-compliance with tax deduction requirements was valid under the statute.