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2015 (4) TMI 1075 - AT - Income TaxTDS u/s 194C - Section 40(a)(ia) disallowance - freight payments due non-deduction of TDS - Held that:- It is an undisputed fact that the assessee hires its payee’s vehicles on routine basis in case its own fleet is unable to perform the transporting assignments. The authorities below treat such an arrangement as a contract to invoke Section 194(c) of the Act. We do not find any material on record to indicate any risk and responsibility being passed over to the payees. That being the case, we observe that a mere hiring job work without any other evidence does not partakes the colour of risk and responsibility forming essential condition of a contract. The assessee’s payees have not been paid in lieu of any risk and responsibility to treat the impugned freight payments as those covered u/s.194C of the Act. The assessee’s former plea (supra) succeeds. The latter one has become infructuous. The impugned section 40(a)(ia) disallowance is deleted. - Decided in favour of assessee.
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