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2013 (9) TMI 976 - ALLAHABAD HIGH COURTApplicability of section 194I or 194C of the Income Tax Act - nature of payment for use of vehicals - whether rent or not – Held that:- the word 'rent' has not been defined in Section 2 of the Act. The definition of the word 'plant' under sub section (3) of Section 43, falls in Chapter IV - Computation of Total Income, which is neither relatable nor applicable to the Chapter XVII, relating to collection and recovery of tax. Even otherwise, it is difficult to believe that the word 'plant' defined in Chapter IV - computation of total income, falling under Section 43 of the Act, includes buses hired by the educational institutions. According to the facts of the present case, assessee itself has not utilized the buses being plants but they were used by the transport contractor for fulfilling the obligations set out in the contract agreement. Therefore, the provisions of Section 194-I could not be applied to the facts of the present case and it has to be held that assessee has rightly deducted tax at source under the provisions of Section 194-C of the Act.
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