TMI Blog2011 (12) TMI 603X X X X Extracts X X X X X X X X Extracts X X X X ..... The facts relating to the issue are stated in brief. The assessee firm is carrying on transport business by undertaking transport contract from ILTD division of M/s ITC Ltd. The assessee received a sum of ₹ 6.91 crores as transport charges from M/s ITC Ltd. In the profit and loss account, it claimed a sum of ₹ 6.52 crores as deduction towards Lorry Hire charges paid by it to various lorry owners. The Assessing Officer was of the view that the assessee is liable to deduct tax at source u/s 194C(2) of the Act on the said payments and since the assessee has not so deducted the TDS, he reopened the assessment by issuing notice under section 148 of the Act. Before the Assessing Officer, the assessee submitted that it has merely hir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lure on the part of the assessee to deduct tax at source under section 194C of the Act on such payments made to the lorry owners, the same is liable to be disallowed u/s 40(a)(ia) of the Act. In this regard, the Learned D.R relied upon the following case law: (a) J.Rama (194 Taxmann 37) (b) Sree Choudhry Transport Co. (225 CTR 125 (Raj)) (c) Vellapalli Bros. (196 Taxmann 269) (d) V.M.Sankar (127 ITD 316) 5. On the contrary, the Learned A.R submitted that mere hiring of lorries cannot be said to be giving the work on Sub-Contract . In this regard, he strongly relied on the decision rendered by this bench in the case of Mythri Transport Corporation reported in 124 ITD 40, where in it was held that the mere hiring of lorries wo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sociated with the main contract. In the instant case also, the contention of the assessee is that it has merely hired the lorries from the open market. It is not shown by the revenue that the lorry owners, from whom the lorries were hired, undertook the risks associated with the main contract. In that case, mere hiring of lorries would not come under the category of Sub-contract as held in the case of Mythri Transport Corporation, (Supra). Accordingly the provisions of sec. 194C(2) shall not apply to the assessee. 7. In the case of Kranti Road Transport Pvt. Ltd, this bench of the Tribunal, vide its order dated 11-08-2011 in ITA No.358/Vizag/2008 considered the signification of the words Carrying out any work as appearing in sec. 194 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
