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2019 (1) TMI 658 - HC - Income TaxTDS u/s 194C - Assessee had made payments for transportation of the goods in excess of ₹ 50,000/- without deducting tax at source - addition u/s 40(a)(ia)- proof of contract or sub-contract between the payer or payee - Held that:- Tribunal reiterated relying on judgment in case of Merilyn Shipping and Transports (2012 (4) TMI 290 - ITAT VISAKHAPATNAM), is clearly an error. The Supreme Court in the case of Palam Gas Service v/s Commissioner of Income Tax [2017 (5) TMI 242 - SUPREME COURT] has reversed the view of the Merilyn Shipping and Transports (supra) holding that the disallowance would also cover the payments which are also made as long as of-course the breach of the requirements of deduction of tax at source is found. Requirement of deducting tax at source itself did not arise since the Assessee had simply hired the trucks for specific transportation work for jobs assigned to him and there was no contract of agency or middle man. Thus, there was no contract or sub-contract between the payer or payee. In this respect, we are in agreement with the view of the authorities below. No questions of law arises. - Decided against revenue
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