TMI Blog2011 (11) TMI 495X X X X Extracts X X X X X X X X Extracts X X X X ..... order of CIT(A) is upheld in holding that the assessee has rightly deducted tax as per provisions of sec. 194C and there is no case of short deduction - Decided in favor of assessee. - ITA Nos. 5773 and 5774/Mum/2010 - - - Dated:- 25-11-2011 - D.K. Agarwal, R.K. Panda, JJ. Alexander Chandy for the Appellant S.H. Subramanian for the Respondent ORDER D.K. Agarwal: These two appeals preferred by the Revenue are directed against the separate orders dated 14-11-2008 passed by the ld. CIT(A) for the assessment years 2007-08 and 2008-09. Since facts are identical and issue involved is common, both these appeals are disposed of by this common order for the sake of convenience. 2. Briefly stated facts of the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dated 8-8-1995, held that the assessee has rightly deducted tax as per provisions of sec. 194C and there is no case of short deduction and accordingly allowed the claim of the assessee. 3. Being aggrieved by the order of the ld. CIT(A), the Revenue is in appeal before us taking the following grounds of appeal: "(a) On the facts and in the circumstances of the case and in law the Ld. CIT(A) erred in not appreciating the fact that vehicle hiring falls under Section 1941 after he amendment of section 194I w.e.f. 13/07/2006. (b) On the facts and in the circumstances of the case and in law the Ld. CIT(A) erred in allowing assessee's appeal on the issue of short deduction of TDS on payment made for hiring of vehicles on Rs.7,71,276/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rties towards hiring of vehicles provided to staff to visit and supervise various project sites on a daily basis. We further find that before the ld. CIT(A) it has been submitted by the assessee that the transport contractors are selected and the services of their taxis are availed for day to day use. Some of the cars are used continuously on many working days and throughout the month also. These vehicles are just a means of transport. Such vehicles are required on regular basis from transport contractors, rates of tariff are bargained on monthly basis on the presumption of 30 days use like Rs. X per day for Y kilometers and for 8 to 12 hours with additional charges for extra time and/or mileage. The contractors mostly raise periodic monthl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es of drivers are made separately, the payments will be covered by section 194-I. There is a distinction between hiring/leasing a car and engaging a transport contractor to provide vehicles/taxi for transporting passengers from one place to other. In hiring/leasing a car, there is a conditional transfer of property rights whereas in case of engaging, the transport contractor to provide the facility of transport by way of suitable vehicle, there is no transfer of property rights. Considering the facts of the case and legal position as well as CBDT Circular No.713 dated 2-8-1995 and Circular No.715 dated 8-8-1995 in this regard, I am of the view that the appellant has rightly deducted tax as per provisions of section 194C and there is no case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns, hold that the assessee's case falls under sub-clause (c) to Explanation (iii) of sec. 194C of the Act and the AO has wrongly applied the provision of sec. 194-I of the Act and, accordingly, we are inclined to uphold the finding of the ld. CIT(A) in holding that the assessee has rightly deducted tax as per provisions of sec. 194C and there is no case of short deduction. The grounds taken by the Revenue are, therefore, rejected. ITA No. 5774/Mum/2010 : AY 2008-09 (Revenue's appeal): 9. At the time of hearing, it has been agreed by both the parties that the facts and issue involved in this appeal are the same as in the appeal for the assessment year 2007-08. Therefore, the plea taken by them in the said appeal may be considered whi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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