Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (1) TMI 176 - AT - Income TaxTDS to be deducted u/s 194(I) of the Act – Applicability of Section 194C of the Act on payment made for hiring of buses – Held that:- Following Lotus Valley Education Society Vs. ACIT (TDS) [2011 (1) TMI 65 - ITAT, DELHI ] - The object of the assessee to enter into such agreement was a simple activity of carrying its students and staff from their homes to the school and similarly from school to their homes - The assessee has no responsibility whatsoever regarding the buses to be utilized for that purpose which was the sole responsibility of the transport contractor - The transport contractor only was liable to keep and maintain the required number of buses for such activity at their own expenses with the specified standards – thus, the contract is purely in the nature of services rendered by the transport contractor to the assessee - The assessee was not having any responsibility whatsoever regarding the transport vehicles used in such activity - As against that, "rent" which is defined in explanation to sec.194 inter-alia is for the use of "plant" which according to the AO includes buses - 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 - the provisions of Sec. 194 I could not be applied and the assessee has rightly deducted tax at source under the provisions of sec. 194C of the Act – Decided against Revenue.
|