TMI Blog2012 (12) TMI 892X X X X Extracts X X X X X X X X Extracts X X X X ..... mount outstanding as on 31.03.2006 and direct the AO to delete the balance amount of Rs.61,66,953/- as already paid - partly in favour of assessee. Transportation hire charges - TDS u/s. 194C - Held that:- Since the facts regarding assessee having contract with the transporters or truck owners is not examined by the lower authorities, this issue is restored back to the file of the AO. to decide the issue whether there exists any contract or not so as to attract TDS u/s. 194C on hire charges for carrying on the job - in favour of assessee by way of remand. - ITA No.458/Kol/2010 - - - Dated:- 21-9-2012 - Pramod Kumar and Mahavir Singh, JJ. Appellant Rep by: Shri A.K. Tulsiyan Rajeeva Kumar Respondent Rep by: Shri D.K. R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the matter, the AO in the assessment order observed that this case is covered under sub-section 2 of section 194C of the Act wherein obligation is cast upon the assessee to deduct TDS @ 1% from the payments made to sub contractors. He also observed that Explanation III(c) to Section 194C of the Act brings the carriage of goods under the ambit of sub contract on which TDS is to be made. He further observed that though the status of the assessee is an individual but his turnover exceeds the limit specified u/s. 44AB of the Act. The provisions of section 194C(2) of the Act specifies that such individual assessees are also liable to make TDS from payments made to sub contractors. He also observed that the clause (i) of sub section 3 of secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal in the case of Merilyn Shipping Transports Vs. Addl. CIT (Visakhapatnam)(SB) reported in (2012) 136 ITD 23 (SB). On query from the bench, Ld. Sr.DR has not objected to the argument of the Ld. counsel for the assessee that the issue is covered. We find that the CIT(A) has recorded this fact that the amount outstanding as on 31.03.2006 i.e. payable is only Rs.5,65,175/- out of the total amount of Rs.67,32,128/-. We find that this issue is squarely covered by the decision of Special Bench of ITAT, Visakhapatnam in the case of Merilyn Shipping Transports, supra, wherein it has been held as under: I am of the firm view that section 40(a)(ia) of the Act is applicable only to expenditure which is payable as on 31 st March of e ..... X X X X Extracts X X X X X X X X Extracts X X X X
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