TMI Blog2013 (7) TMI 538X X X X Extracts X X X X X X X X Extracts X X X X ..... the nature of relationship between the assessee and the transporter is not a case of sub-contract - none of the responsibilities of the contractor vis-a-vis the execution of the work were fastened on the transporters. Assessee had indemnified ANS Construction against any legal or financial liability if such liability arises in future out of such contract - assessee was solely responsible for execution of the work - No part of such liability was fastened on the transporters - assessee had only availed of the services of such transporters for carrying out the material to the site - to reiterate, for application of section 194C(2) of the Act what was necessary was a relationship between the contractor and sub-contractor and not merely be hi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onclusion that the provisions of section 194C of the Income-tax Act, 1961 were made applicable in respect of individuals with effect from 1.6.2007. Present case concerns the assessment year 2005-2006. Such provision therefore, will not be applicable in the case on hand. 3. In case of Prashant H. Shah (supra), Tribunal had made following conclusions : "7. We have heard both the sides at some length. We have also perused the material placed before us in the the light of the provisions of the Act as also the case law cited. Before we proceed further, we may like to point out that the provisions of section 194C of the Act and undergone certain vital changes in the recent past. The main purpose of introduction of this section in the Act is t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding that the assessee being an individual got covered by sub-section (1), then according to us, it was an incorrect application of law. We therefore hold that for the Asstt. Year under consideration 2007-08 the provisions of sub-clause(k) of 194C(1) are not applicable being introduced w.e.f. 1.6.2007 and the assessee being an individual is consequently out of the clutches of this clause." 4. Counsel for the Revenue candidly pointed out that such decision of the Tribunal came up for consideration before this Court in Tax Appeal No.1591/2011. Tax Appeal was dismissed by an order dated 9.10.2012. Following observations were made : "(7) In the present appeal, we are principally concerned with the interpretation of section 194C of the Act a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sub-section (2) of section 194C, the requirement is that there is a contractor who has undertaken to carry out any work or supply of labour, a part of such work or supply of labour is executed through a sub-contractor and in pursuance of execution of such work, the payment is being made either in cash or in any other manner or the same is being credited in the account of the sub-contractor. Only under such circumstances, the requirement of deducting tax at source on such payment would arise on the part of the contractor. (10) The Tribunal, upon detailed examination of the nature of relationship between the assessee and the transporter, came to the conclusion that this is not a case of sub-contract. The Tribunal noted that none of the res ..... X X X X Extracts X X X X X X X X Extracts X X X X
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