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2021 (9) TMI 46 - HC - Income TaxTDS u/s 194C - non deduction of TDS on lorry hire payments - addition u/s 40(a)(ia) - vehicles hired from the sub-contractors - as per assessee there was no written contract nor any contract as presumed by the Department between the lorry owners/drivers and the assessee, and where ever it was feasible, TDS has been deducted, and only in cases where payments were made to the lorry owners, there is no feasibility of deducting any Tax at Source - HELD THAT:- While testing the correctness of the stand taken by the assessee, the Court considered the factual position that the assessee is providing vehicles to one of its customers, M/s.Mahindra Group, and in Clause-5 of the written agreement between the parties, a condition has been stipulated that provision of services would involve providing vehicles owned by the assessee or associates of assessee or agents, for transportation of the employees of Thomson Corporation, and further, on facts, it was found that the assessee is owning a fleet of vehicles, which is not sufficient to meet the agreement entered into between the assessee and such individual owners. The Court held that there is no necessity for a written agreement between the parties. The facts before us are entirely different, as both the CIT(A) as well as the Tribunal have held on facts that the assessee hired vehicles from the drivers and there was nothing on record to infer any unwritten contract. Therefore, we are of the view that the decision in the case of J.Rama [2012 (6) TMI 645 - KARNATAKA HIGH COURT] cannot be made applicable to the facts and circumstances of the case on hand. Tribunal was right in dismissing the appeal filed by the Revenue and granting full relief to the assessee - Decided against revenue.
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