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2011 (3) TMI 1017 - HC - Income TaxDisallowance u/s 40(a)(ia) - non deduction of TDS as required under Section 194C(2) - Held that:- assessee union has been formed by truck operators as its members in order to obtain bigger contracts through it. It is, of course, entitled to booking charges received which constitute its main income and the main function of the assessee was to arrange contracts from different agencies for its member truck operators which were factually and collectively performed by such members - The assessee union did not give any sub-contract to its members as alleged by the Assessing Officer - Therefore, by no stretch of imagination the member truck operators can be said to be the sub-contractors of the assessee within the meaning of section 194-C(2) and as such the assessee was not liable to deduct any tax out of freight belonging and disbursed to them - Decided in the favour of the assessee
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