TMI Blog2013 (9) TMI 976X X X X Extracts X X X X X X X X Extracts X X X X ..... ucational institutions. According to the facts of the present case, assessee itself has not utilized the buses being plants but they were used by the transport contractor for fulfilling the obligations set out in the contract agreement. Therefore, the provisions of Section 194-I could not be applied to the facts of the present case and it has to be held that assessee has rightly deducted tax at source under the provisions of Section 194-C of the Act. - Income Tax Appeal No. - 230 of 2011, Income Tax Appeal No. - 231 of 2011 - - - Dated:- 12-9-2013 - Hon'ble Sunil Ambwani And Hon'ble Surya Prakash Kesarwani,JJ. For the Appellant : Ashok Kumar (S.S.C.) ORDER 1. We have heard Sri Ashok Kumar for the appellant-department. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... holding that the amended provisions of Section 194-I of the Act uses the word 'plant' - vehicle used by the assessee comes under the definition of 'plant' as per sub section (3) Section 43, which reads that "plant' includes ships, vehicles, books, scientific apparatus and surgical equipment used for the purpose of the business or profession but does not include tea bushes or livestock or buildings or furniture and fittings. 6. In the second appeal, the ITAT held that the provisions of Section 194-I of the Act could not be applied to the facts of the case. The assessee has rightly deducted tax in accordance with provisions of Section 194-C of the Act. Paragraph 6 of the judgment of the Tribunal, giving the reasoning to arrive at such conc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rrying its students and staff from their homes to the school and similarly from school to their homes. the assessee has not responsibility whatsoever regarding the buses to be utilized for that purpose, which was the sole responsibility of the transport contractor. The transport contractor only was liable to keep and maintain the required number of buses for such activity at their own expenses with the specified standard therefore, the said contract is purely in the nature of services rendered by the transport contractor to the assessee. The assessee was not having any responsibility whatsoever regarding the transport vehicles used in such activity. As against that, "rent" which is defined in Explanation Section 194-I inter-alia is for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ound, etc., but in interpreting a taxing statute all these considerations are irrelevant. In a taxing statute, the principle of literal interpretation is very strictly applied. It is often said that there is no equity in taxes and tax and equity are strangers. In our opinion, there is no equity in a tax and considerations of equity are wholly out of place in a taxing statute. This is because the principle of strict interpretation applies to taxing statutes." 8. We have examined the reasoning given by AO, CIT and the Delhi High Court (Supra), and find that word 'rent' in the explanation to 194-I includes 'plant' but that 'plant' has not been defined under definition clause of Section 2 of the Act, which is general definition clause under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble to deduct an amount equal to one percent where the payment is being made or credit is being given to an individual or a Hindu undivided family and at two percent, where the payment is be made or credit is being given to a person other than an individual or a Hindu undivided family. The definition clauses for the purpose of Section 194-C provides that the term 'work' shall include (a) advertising; (b) broadcasting and telecasting including production of programmes for such broadcasting or telecasting: (c) carriage of goods or passengers by any mode of transport other than by railways; (d) catering; (e) manufacturing or supplying a product according to the requirement or specifications of a customer by using material purchased from such c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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