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2019 (5) TMI 768 - AT - Income TaxDisallowance u/s 40(a)(ia) - TDS u/s 194C - payments towards the hiring charges of cranes - HELD THAT:- We are persuaded to subscribe to the contention advanced by the Ld. A.R that a simpliciter payment towards hiring charges of cranes cannot be brought within the sweep of the definition of the term “work” as envisaged in Sec. 194C In our considered view, as the assessee was under no obligation to deduct tax at source u/s 194C in respect of the payments made towards hiring charges of cranes, therefore, the lower authorities had erred in disallowing the same for the said reason by invoking the provisions of Sec. 40(a)(ia). We thus not being in agreement with the view taken by the lower authorities that it was obligatory on the part of the assessee to deduct tax at source u/s 194C on the payments made towards simpliciter hiring charges of cranes, set aside the order of the CIT(A) and vacate the disallowance of ₹ 9,50,600/- made by the A.O u/s 40(a)(ia). - Decided in favour of assessee.
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