Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2015 (8) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (8) TMI 564 - HC - Income TaxTDS liability u/s 194C - hiring of cabs for the purpose of carrying on its business by the assessee - Whether the Tribunal was correct in holding that the assessee is not bound to deduct TDS as the provisions of section 194C are not attracted as no agreement was entered into by the assessee with the other operators, when the assessee has admitted the applicability of section 194C and tax was deducted at source ? - Held that:- This court had an occasion to consider the said substantial question of law in the case of Smt. J. Rama v. CIT reported in [2012 (6) TMI 645 - Karnataka High Court] wherein held It is not in dispute that the turnover of the assessee exceeds the monetary limit specified under clause (a) or clause (b) of section 44AB. Therefore, the liability to deduct tax arises under the said proviso to the sub-contractor from whom the vehicles are hired and the said amount payable to the sub-contractor is in excess of ₹ 20,000. Therefore, the three authorities have concurrently held that the transaction in question is a transport contract. The liability to deduct out of the money paid to the sub-contractors does arise. Immediately, TDS is not deducted and the said amount is not paid to the authorities. Therefore, the claim for deduction under section 40(a)(ia) is not attracted and the authorities were justified in disallowing the said deduction and treating the said amount as the income of the assessee and claiming tax on that amount. The learned counsel for the assessee submits that it has been paid within the time prescribed before the due date for filing the return, which is permissible in law. Unfortunately, none of the authorities have gone into this question. Therefore, it is necessary to remit the matter back to the assessing authority to find out whether the payment of TDS paid by the assessee is within the time prescribed under the law. If it is within time, then the assessee is entitled to the relief. Accordingly,substantial questions of law are answered in favour of the Revenue. The matter is remitted back to the assessing authority to find out whether TDS payment is within time and the assessee is entitled for the benefit in accordance with law. - Decided against assessee.
|