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TMI Blog2012 (6) TMI 577X X X X Extracts X X X X X X X X Extracts X X X X ..... trix of this ground are that the assessee is an individual and proprietor of two concerns, namely, 'M/s Ratan Transport' and 'M/s Ratan Forklift Hiring Services', which are engaged in the business of forklift hiring. The hire charges so received from the various parties from hiring of forklift vehicles were either through the forklift vehicles owned by him or taken on hire from outside parties for which he had to make payment to such other parties. 3. The Assessing Officer during the course of the assessment proceedings noted that the assessee had declared turn over of Rs. 82.73 lacs in M/s Ratan Forklift and Rs. 15.82 lacs in M/s Ratan Transport from hiring business. As against this, the assessee has claimed hire charges p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her submitted that individuals are not liable to deduct TDS under Section 194C(2) in respect of payment to sub-contractors under sub-section (2) of Section 194C, which has only come in the statute w.e.f. 1- 6-2007. Further reliance was placed on the following decisions :- (i) Punjab & Haryana High Court in the case of CIT (TDS) v. United Rice Land Ltd. [2008] 174 Taxman 286. (ii) Mythri Transport Corporation v. Asstt. CIT [2010] 124 ITD 40 (Visakha.) (iii) Order of CIT(A) 24 in the case of Janardhan V. Sawant, A.Y. 2007-2008 (Appeal No. CIT(A) 24/ACIT, 13 (2)/337/09-10 dtd.11.06.2010). 5. Learned CIT(A) dismissed the assessee's contention simply by affirming the finding of the Assessing Officer. 6. Learned AR appearing on behalf of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e is solely responsible for executing the contract with the persons to whom he has given forklift vehicles on hire and it is only for fulfilment of this contract that he has also engaged the forklift vehicles from the outside parties. In case of hiring from outside parties the responsibility and the risk involved for performing the contract work lies with the assessee only and no such risk and responsibility seems to have been transferred to outside parties vis-à-vis his principals. The provisions of Section 194C applies to any payment made to a contractor for carrying out any work in pursuance of a contract between the contractor and the specified persons. The contract also includes sub-contract. For application of provisions of Sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 and levied interest under section 201(IA) of the Act. The Commissioner (Appeals) partly allowed the appeal filed by the assessee. The appeal filed by the revenue was dismissed by the Tribunal. On further appeal: Held: dismissing the appeal, that the Assessing Officer had held the assessee liable to deduction of tax only on the assumption that the assessee had agreement with the parties through whom trucks were arranged for transportation of goods. The Commissioner (Appeals) had recorded a finding that there was neither an oral nor written agreement between the assessee and the transporters for carriage of goods nor had it been proved that any sum of money regarding freight charges was paid to them in pursuance of a contract for a specifi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ew of hiring of machinery and, therefore, it will fall within purview of Section 194(1), is not adjudicated upon and is left upon to be decided in some other matter. The issues regarding applicability of Section 194C in the cases where income is computed u/s 44AE and also applicability of amendment as contended before the authorities below is also not adjudicated upon as we have already decided the issue on merits. 11. Thus, in view of our finding given above, and also respectfully following the decision of the ITAT in the case Janardhan V. Sawant (supra), we hold that the assessee was not liable to deduct TDS under Section 194C(2) in relation to payment made to the outside parties and accordingly there is no violation of Section 40(ia). H ..... X X X X Extracts X X X X X X X X Extracts X X X X
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