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2011 (11) TMI 469 - AT - Income TaxAnnual maintenance contact, pilotage contract and vehicle hire contracts - 194C OR 194J and 194-I – Held that:-It is clear from agreement that they related to annual maintenance of machineries and not for technical services. The revenue in view of the fact that the contractors have utilized services of technical persons presumed that the assessee made payments for technical services. This presumption of revenue cannot be agreed. It may be technical services for contractor but not for the assessee. The payment to pilots is in the nature of salary as their contracts agreement were not for managerial and technical or consultancy services. Therefore, payment made to pilots is not covered by section 194J. Regarding double payment of tax, it was held in case of Hindustan Coca Cola Beverages (P.) Ltd. v. CIT (2007 (8) TMI 12 - SUPREME COURT OF INDIA) that if payee has already paid tax due on the payment received by him from the assessee, the tax could not be recovered once again from the deductor. In the vehicle hire agreement nowhere it is stated that the possession of the vehicles were given to the assessee. While dealing with Section 194I in the case of Vodafone Essar Ltd. vs DCIT (2010 (12) TMI 842 - ITAT, MUMBAI)it was held that merely making use of the facility without himself using the equipment and without taking possession the payment cannot be said to be a rent. Therefore, the payment made cannot be said to be "rent" as provided in section 194-I of the Act – Decided in favor of assessee.
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