TMI Blog2012 (11) TMI 540X X X X Extracts X X X X X X X X Extracts X X X X ..... tend to 'individuals' and that, it was only as a result of the amendment by the virtue of Finance Act 2008 w.e.f 1st June 2008, that individuals were imposed tax deduction obligations under section 194 C(1). so far as pre June 2008 position is concerned, tax withholding obligations under section 194 C in respect of an individual only in cases where the payments were made to a sub contractor for carrying out a part off work, or the work itself, undertaken by the assessee and that too when such individual's turnover from business or profession exceeded threshold specified in section 44AB. When it is not a case of sub contracting, it is wholly immaterial that assessee's turnover exceeded the specified threshold under section 44AB. - the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Aggrieved, assessee is in second appeal before us. 3. We have heard the rival contentions, perused the material on record and duly considered factual matrix of the case as also the applicable legal position. 4. Interestingly, it is not even the case of the Assessing Officer that the assessee was a sub contractor, and rightly so because the assessee required these trucks on hire, from the middlemen or subcontractors, so as to fulfil the obligation of transporting the goods in the course of his business. The payments were not made for transporting the goods but for the hire of the trucks, and, therefore, on the admitted and undisputed facts of this case, it could not indeed be said that the payments were made by the subcontractor. 5. I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the account of the sub-contractor or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct an amount equal to one per cent of such sum as income-tax on income comprised therein. Provided that an individual or a Hindu undivided family, whose total sales, gross receipts or turnover from the business or profession carried on by him exceed the monetary limits specified under clause (a) or clause (b) of section 44AB during the financial year immediately preceding the financial year in which such sum is credited or paid to the account of the sub-contractor, shall be liable to deduct income-tax under this sub-section. Explanation I : For the purposes of sub-section (2), the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent, for invoking section 194C(2), that the payment in question has to be for carrying out a part of the work, or the work itself, undertaken by the contractor, or the supply undertaken by the contractor. . 6. What follows from the above analysis, with which we are in considered agreement, that so far as pre June 2008 position is concerned, tax withholding obligations under section 194 C in respect of an individual only in cases where the payments were made to a sub contractor for carrying out a part off work, or the work itself, undertaken by the assessee and that too when such individual's turnover from business or profession exceeded threshold specified in section 44AB. That condition is clearly not satisfied in the present case ..... X X X X Extracts X X X X X X X X Extracts X X X X
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