TMI Blog2011 (5) TMI 892X X X X Extracts X X X X X X X X Extracts X X X X ..... appeals, for consideration relates to deduction of tax at source at the rate of 2 per cent under section 194-C or 10 per cent under section 194I of the I. T. Act, 1961. The facts of the case stated in brief are that TDS verification was carried out in the office premises of the assessee. During the course of verification of TDS registers and other documents it was gathered that the assessee hired buses for commercial purposes for a limited period on which TDS for the years under consideration was deducted at the rate of 2 per cent under section 194-C in respect of payments made to hired buses on contract basis. The assessing officer on the basis of provisions of section 32 of the Act observed that the buses were commercial vehicles and con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ision of Hon ble Delhi High Court in the case of CIT Vs. Prasar Bharti (Broadcasting Corporation of India) 292 ITR 580 (Del). He also noted that the ld. CIT in assessee s case on identical issue has decided in favour of the assessee. Ld CIT(A) in view of specific provisions of section 194-C as also the binding nature of CBDT Circular / instructions, held that TDS was to be made under section 194-C and not u/s 194I of the Act. 4. Before us the ld. AR of the assessee submitted that assessee had taken buses on hire together with drivers on payment on kilometer running basis. The buses as such were not taken on rent. Therefore, assessee s case is covered by the provisions of section 194-C and not under section 194I of the Act. He further sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roadcasting or telecasting; (c) carriage of goods and passengers by any mode of transport other than by railways; (d) catering. 5.2 From plain reading of definition of word work it is clear that it inter alia includes carriage of goods or passengers by any mode of transport other than by railways. On the other hand, section 194I is applicable to sums paid by way of rent. Explanation (i) of section 194I defines the term rent and inter-alia includes for payment in respect of machinery or plant or equipment. In the instant case, the assessee has entered into an agreement for hiring of buses on kilometer scheme basis. The payment thus made would fall under the category of carriage of goods and passengers by any mode of transport o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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