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2010 (10) TMI 572 - AT - Income TaxAssessee in default - TDS u/s 194I or 194J - Survey - Depreciation - assessee is a company engaged in the business of software development, information technology enabled services and consulting - The service provider was responsible for ensuring all legal and operational obligations - Even if the amendment in the provisions of section 194-I has included the plant and machinery the expression plant and machinery used in the explanation to section 194-I refers to only the plant and machinery used by the assessee in its business by hiring them but not the hiring of transport service - it is amply clear that the contract entered by the Appellant with the transport service provider is in the nature of service contract only - since the appellant does not enjoy the control over the vehicles of the transport service providers and also the running and maintenance expenditure is borne by the transport service providers, the nature of contract entered cannot be termed as contract for hiring of the vehicles - Held that: payments made to the transport service provider fall within the ambit of the provisions of section 194C of the Act - since the appellant has rightly deducted taxed as per the provisions of section 194C of the Act, the assessee shall not be treated as “assessee in default” under section 201(1) of the Act - Thus decided in the favour of the assessee
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