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2013 (12) TMI 137 - AT - Income TaxFreight payment – Tax at source not deducted - Held that:- The risk assumed by assessee cannot be said to have been transferred to lorry owner and if there is no transfer of risk, the lorry owner cannot be said to have executed any part of contract - As per the provisions of section 194C the sub contractor is a person who carries out the whole or any part of the work undertaken by the assessee - Lorry owner was not involved in carrying out any part of the contract undertaken by the assessee spending time, money and energy etc. by taking the risks associated with main contract work - In the absence of above said characteristic attached with sub contract the payment made to lorry owner stands at par with payments made towards salary, rent etc. - The payments made for hired vehicle was a sub contract payment is not correct and not based on relevant facts and circumstances – The assessee was not liable to deduct tax at source as per the provisions of section 194C of the Act - Decided in favour of assessee.
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