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2014 (4) TMI 1278 - AT - Income TaxTDS u/s 194C - amount paid to the lorry drivers/owners exceeded the threshold limit of ₹ 50,000 - disallowance U/s. 40(a)(ia) - CIT (A) held that the amendment to Section 194C (1) (k) of the Act is applicable from 01.06.2007 i.e., for the relevant assessment year 2008-09 onwards - HELD THAT:- As decided in SATISH AGGARWAL AND COMPANY. [2008 (11) TMI 322 - ITAT AMRITSAR] nothing had been brought on record by the Department to the effect that man power was provided along with the trucks to the assessee by the truck owners. Mere provision of the trucks without any man power could not be termed as carrying out any work by the truck owners, for which any payment was made by the assessee. When the assessee entered into a contract for the purpose of taking temporary possession of trucks from the truck owners, it did not amount to the assessee entering into any contract for carrying out any work. Once the contract was not for carrying out any work, the provisions of section 194C were not attracted. Explanation III to Section 194C can not apply to a situation not amounting to a contract for carrying out any work as contemplated in section194C, and entering into a contract for hiring of trucks was not equivalent to entering into a contract for carrying out any work. Therefore, Explanation III to section 194C was not attracted Provisions of section 194C will not be applicable in the present assessee’s case before us and therefore, provisions of Section 40(a)(ia) cannot be invoked for both the assessment years. Accordingly, this issue is decided in favour of the assessee.
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