TMI Blog2015 (9) TMI 805X X X X Extracts X X X X X X X X Extracts X X X X ..... between the assessee and its sister concern and that as and when such equipments were lying idle and the assessee needed them, the same were utilized by the assessee and payment was made to the sister concern. Therefore, the transaction was not in the nature of contract but was in the nature of lease agreement. As regards the applicability of section 194I of the Act, a perusal of the relevant statutory provisions as they stood at the relevant time reveals that section 194I did not include the words, "machinery and equipment" which were inserted only with effect from 14.7.2006. Under the circumstances, having regard to the fact that in the year under consideration the words "machinery and equipment" did not find place in section 194I of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otal income of ₹ 30,42,330/-. The case was selected for scrutiny. The Assessing Officer found that there was a default in deduction of TDS in respect of payment of ₹ 45,56,000/- made to M/s.Kiran Shipping Agency Private Limited for taking dumper, tanker, hydra, forklift etc. from it. According to the Assessing Officer, the assessee was bound to deduct TDS under section 194C of the Act on such payment but it failed to do so. He, accordingly, disallowed payment of ₹ 45,56,000/- on which no TDS was deducted under section 40(a)(ia) of the Act. The assessee carried the matter in appeal before the Commissioner (Appeals), who deleted the disallowance by holding that in the assessee s case tax was not deductible either under secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce, the same would not be applicable in the facts of the present case. 7. The question that arises for consideration in the present case is whether the assessee was liable to deduct TDS while making payment to its sister concern in respect of equipments taken on lease by it from the sister concern either under section 194C or section 194I of the Act. 8. Insofar as the applicability of section 194C of the Act is concerned, both, the Commissioner (Appeals) as well as the Tribunal have recorded a concurrent finding of fact to the effect that there was no contract between the assessee and its sister concern and that as and when such equipments were lying idle and the assessee needed them, the same were utilised by the assessee and paymen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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