Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2008 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2008 (11) TMI 322 - AT - Income TaxLiability for deduction of TDS u/s 194C - addition on hire charges - "work"as used in ss. 194C(1) and (2) - CIT(A) deleted the addition made by AO - payment was made for hiring charges regarding hiring of trucks - whether the addition made by the AO has rightly been deleted by the learned CIT(A), holding that the provisions of s. 194C of the Act are not attracted? - HELD THAT:- It is not the case of the Department that the trucks taken on hire by the assessee from the truck owners were supplied by the truck owners to the assessee along with manpower, i.e., drivers and/or conductors. The trucks were undeniably put to use by the personnel of the assessee. Thus, nothing has been brought on record by the Department to the effect that manpower was provided along with the trucks to the assessee by the truck owners. Mere providing of the trucks without any manpower cannot be termed as carrying out of any work by the truck owners, for which, any payment was made by the assessee. When the assessee entered into a contract for the purpose of taking temporary possession of trucks from the truck owners, it did not amount to the assessee entering into any contract for carrying out any work. Once the contract was not for carrying out any work. as per CIT vs. Poompuhar Shipping Corporation Ltd.[2006 (1) TMI 60 - MADRAS HIGH COURT], the provisions of s. 194C are not attracted. Explanation III to s. 194C explains the expression "work" as used in ss. 194C(1) and (2) of the Act. Obviously, the Explanation cannot operate beyond the field of the section read with the Explanation. The Explanation would be applicable if the assessee had made any payment for carrying out any work including, as per the Explanation, carriage of goods and passengers by any mode of transport other than by railways. The Explanation cannot apply to a situation not amounting to a contract for carrying out any work as contemplated in s. 194C, and entering into a contract for hiring of trucks is not equivalent to entering into a contract for carrying out any work. Therefore, Expln. III to s. 194C is not attracted to the facts of the present case. Therefore, no merit in the grounds raised by the Department, the same are hereby rejected, upholding the order of the CIT(A).
|