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2017 (3) TMI 877 - HC - Income TaxTDS u/s 194C - liablilty to deduct any TDS - possession of the machinery temporarily was passed to the assessee after entering into agreement with the lender - Held that:- Agreement of hire, which was subject matter of interpretation in the case in hand, was in regard to machinery and equipment owned by lender, i.e., M/s Jaiprakash Associates Ltd. Since these machineries and equipments are of big size, for the purpose of their operation requisite staff etc. was to be provided by lender but hirer was to make payment of only hire charges. The assessee was not under an obligation to carry out the work as it was not under the control of the lender and the possession of the machinery temporarily was passed to the assessee after entering into agreement with the lender. Therefore, in the present case, taking of the machinery and equipment on hire would not amount to a contract for carrying out any work as contemplated in section 194C of the Act. The said contract i.e. taking of machinery and equipment on hire also cannot be treated with a contract for supply of labour. Therefore, the provisions of section 194C of the Act were not applicable to the facts of the assessee's case, as such no disallowance was called for u/s 40(a)(ia) of the I.T. Act - Decided in favour of assessee
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