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2014 (9) TMI 548 - ALLAHABAD HIGH COURTAssessee in default u/s 201 and 201(1A) – Liability to deduct u/s 194I - Whether the assessee was liable to deduct tax as the assessee was not paying any rent to M/s Usha Udyog Ltd. in respect of land and building including the factory but the assessee was paying hiring charges of plant and machinery only - Held that:- The agreement indicated that the assessee was required to carry on re-rolling work in the factory of M/s Usha Udyog Ltd. for which a rate was fixed @ ₹ 200/- per metric ton on the raw material produced by them and that the agreement indicated that the assessee would not utilize the building along with plant and machinery - the agreement is related to the use of plant and machinery and not to the use of land and building - the assessee on the basis of the agreement was not found paying rent in respect of use of land and machinery including factory building but was making payment for use of plant and machinery on monthly production basis - the assessee was not liable to deposit tax at source u/s 194-I of the Act on the amount paid by the assessee towards hiring charges on plant and machinery - no case for payment of penalty could be made out against the assessee – Decided against revenue.
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