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2012 (11) TMI 319 - AT - Income TaxCarting expenses - Non deduction of TDS - Addition u/s 40(a) (ia) - Held that:- As decided in CIT Vs Poompuhar Shipping Corporation Ltd. [2006 (1) TMI 60 - MADRAS HIGH COURT] that the payment of hire charges for taking temporary possession of the ships by the assessee-company would not fall within the provision of section 194C and hence no tax was required to be deducted.The hiring of ships for the purpose of using them in the assessee’s business did not amount to a contract for carrying out any work as contemplated in section 194C The assessee in the present case was hiring trucks for the purpose of his business of providing transportation services to his client M/s. HPCL. Section 194 C makes it clear that TDS is deductible only in the case when the recipient contractors renders the work of carriage of goods or passengers by any mode of transport other than railways. In this case it is evident that the assessee had only hired out the vehicles and rendered the services of transportation of goods i.e. LPG cylinders by itself at its own risk and reward. The contract executed between the appellant and M/s. HPCL contained specifically provides that the appellant shall not sub-let any work entrusted to him & the appellant is assigned the job of transportation and it had performed the job of transportation by itself - The Revenue has not brought out any material to establish that the owner of the vehicles have performed any work other than hiring their vehicles to the appellant - in favour of assessee.
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