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2011 (5) TMI 656 - ITAT, PUNEDisallowance u/s 40(a)(ia)- payments made on weekly basis to casual labourers – payments made to the head of the family -payments made for hire for tractor and trolleys- Held that:- Payments are composite payments made for multiple labourers and the payment for each labour did not exceed Rs. 50,000/- during the year thereby, the provisions of section 194C were not attracted in the absence of any evidence contrary to the confirmations of the recipients available on record. Assessee has claimed that the impugned expenditure is on account of hiring of tractors and trolleys on a day basis and does not involve any transportation contract. Merely on the fact that assessee has debited the expenditure under the head 'Transport and octroi' it cannot be construed as a payment for a transportation contract. The nature of the expenditure cannot be deduced merely on the basis of the treatment accorded in the account books, but it has to be decided on the basis of substantive character of the transaction. Hence 194C is not applicable on above mentioned expenditures. Partly allowed in favor of aseessee.
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