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2012 (3) TMI 491 - ITAT AHMEDABADTDS u/s 194C - Addition u/s 40(a)(ia) - Held that:- The owners of the trucks had only hired their vehicles to the assessee by receiving hire charges while as the work of transportation has been carried on by the assessee. The risk and reward for the performance of the job lies with the assessee and not with the owners of the trucks. In such circumstances, provisions of Section 194C of the IT Act will not be attracted and consequently provisions of Section 40(a)(ia) of the IT Act also not applicable. Section 194C requires TDS on payments to contractor for work. Where an assessee utilizes the trucks taken on hire for its own use, there is no agreement for carrying out any work by the owner to the hirer. There is no scope in such case for application of Sec.194C which is applicable to payments to transporter for carrying of goods. - Appeal of the assessee is allowed.
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