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2018 (4) TMI 142 - HC - Income TaxTDS u/s 194C OR 194I - payment made by assessee to the Carrier under the contracts for transporting the petroleum products in the business in which the respondent assessee is engaged - the contract involved exclusive use of vehicles by the respondent assessee in carrying on its business - Held that:- We have noticed the terms of the preamble. We have noticed various clauses. We are in agreement with the view of the Appellate Authority as affirmed by the Tribunal. It is a case, where the Carrier under the contract was undoubtedly obliged to maintain the requisite number of trucks of a particular type subject to various restrictions and conditions, but it was under the obligation to operate the Trucks for the purpose of transporting the goods belonging to the Company. Therefore, we would think that use of the words “exclusive right to use the truck” found in Clause 1 and also in Clause 6(e) may not by itself be decisive of the matter. We would think that even after the amendment to the Explanation under Section 194-I, the case cannot fall within its scope as it is a case of a contract of the transport of the goods and, therefore, a contract of work within the meaning of Section 194-C and not one which falls within the Explanation of Section 194-I, namely, use of plant by the respondent Company. Thus the contracts in question read as a whole, in our view, will yield the inevitable conclusion that the cases at hand must fall within the four corners of Section 194-C - Decided in favour of assessee.
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