Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2013 (1) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (1) TMI 592 - HC - Income TaxDisallowance u/s.40(a)(ia) – TDS u/s 194C - Scope of sub-section (2) of section 194C – Assessee is individual and engaged in the business of construction - To transport construction material at the site, assessee had availed the services of transporters - Made payments to such transporters under the head transport charges - Payment made to contractor and sub-contractor - Assessee had only availed of the services of such transporters for carrying out the material to the site Held that:- Section 194C(2) what was necessary was a relationship between the contractor and sub-contractor and not merely be hiring of an agency by the contractor during the course of execution of the work. Such vital requirement of relationship of a contractor and sub-contractor between the assessee and the transporters was missing Till introduce of Clause (k) of sub-section (1) of section 194C, the category of individual, HUF or AOP was not included. Such amendment was made with effect from 1st June 2007 and obviously, therefore, would not apply to the case on hand. The Tribunal, therefore, correctly came to the conclusion that the case of the assessee was not covered u/s 194C(1) In favour of assessee
|