2013 (11) TMI 1237 - ITAT JODHPUR

TDS u/s 194C or 194J - assessee engaged the contractors having the expertise in the respective fields - nature of contract - simple works contract or technical services contract - Held that:- Assessing Officer was not justified in treating the contract entered into by the assessee with various parties for exploration or extraction of mineral oil and natural gas as a contract for technical services.

The services for mining, obtained by the assessee, were not the technical services. As such the Assessing Officer was not justified in holding that the provisions of section 194J of the Act were applicable because the assessee entered into contract for technical services with the service providers. - Decided in favor of assessee.

TDS u/s 194I - payments made to contractors for hiring of crane - Held that:- Assessing Officer treated the crane fitted with truck as plant & machinery and held that the provisions of section 194I were applicable for deducting TDS. However, the provisions contained in section 194I of the Act are applicable for plant & machinery or for land and building or land appurtenant to a building or , plant, equipment, furniture or fittings but as we have already observed in the earlier part of this order that cranes are not the plant & machinery as per the ratio laid down by the Hon'ble Gujarat High Court in the case of Gujco Carriers Vs. CIT (2002 (2) TMI 48 - GUJARAT High Court). Therefore, the provisions of section 194J of the Act were not applicable. - Decided in favor of assessee.