Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2014 (2) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (2) TMI 74 - HC - Income TaxTDS u/s 194C - Disallowance for non-deduction of tax at source - transporting the employees of Institute of Plasma Research - Held that:- Relying upon the decision in CIT v. Prashant H. Shah [2013 (1) TMI 592 - GUJARAT HIGH COURT] - For application of section 194C(2) of the Act what was necessary was a relationship between the contractor and sub-contractor and not merely be hiring of an agency by the contractor during the course of execution of the work - In the case of assessee such vital requirement of relationship of a contractor and subcontractor between the assessee and the transporters was missing - The Revenue did not bring out any material to establish that the owner of the vehicles performed the work of transportation - The entire task of transportation of employees and the guests was to be performed by the contractor – The assessee had not assigned it to a subcontractor - The assessee had merely hired the vehicles for performing its part of the contract with IPR - The work of transportation or part thereof was assigned to a subcontractor was rightly not accepted by the Tribunal - The Tribunal, was perfectly justified in holding that liability to deduct tax at source in the present case do not arise - Decided against Revenue.
|