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TMI Blog2016 (10) TMI 322X X X X Extracts X X X X X X X X Extracts X X X X ..... panies. The assessee has filed its return of income for the assessment year 2007-08 on 31.10.2007 admitting total income of Rs. 18,32,535/-, which was processed u/s 143(1) of the Income Tax Act, 1961 (hereinafter called as 'the Act') on 26.9.2008. Subsequently, the assessment has been completed u/s 143(3) of the Act and determined total income of Rs. 29,84,865/-. Thereafter, the CIT, Vijayawada revised assessment order u/s 263 of the Act, on the ground that the assessee has failed to deduct TDS on transportation charges u/s 194C of the Act and accordingly directed the A.O. to pass fresh assessment order. The A.O., as per the directions of the CIT u/s 263 of the Act, passed fresh assessment order u/s 143(3) r.w.s. 263 of the Act and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ag/2008 and Kranti Road Transport Pvt. Ltd. Vs. ACIT in ITA No.358/Vizag/2008. The CIT(A) after considering the submissions of the assessee and also following the decision of jurisdictional ITAT, held that agreement between the assessee and the truck owners is not coming within the definition of contract as defined u/s 194C of the Act, consequently, any payment made to lorry owners is not liable for TDS u/s 194C of the Act. With these observations, directed the A.O. to delete the additions made under the provisions of section 40(a)(ia) of the Act. Aggrieved by the CIT(A) order, the revenue is in appeal before us. 4. The Ld. D.R. submitted that the Ld. CIT(A) is not justified in holding that the payments made in excess of Rs. 20,000/- are n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t a sub contract as defined under the provisions of section 194C of the Act, accordingly the A.O. was not correct in disallowing transportation charges by invoking provisions of section 40(a)(ia) of the Act. The A.R. further submitted that the issue is squarely covered by the decision of ITAT, Visakhapatnam in the case of Mythri Transport Corporation Vs. ACIT in ITA No.183/Vizag/2008, P. Ramachandra Rao Vs. ACIT in ITA No.387/Vizag/2008 and Kranti Road Transport Pvt. Ltd. Vs. ACIT in ITA No.358/Vizag/2008. The A.R. further submitted that on similar facts, the Hon'ble ITAT, held that mere hiring of trucks does not amount to contract or sub contract as defined under the provisions of section 194C(2) of the Act. 6. We have heard both the part ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... id after completion of trip. The assessee further argued that the arrangement between assessee and the truck owners is a mere hiring of trucks, but not a contract or sub contract as defined under the provisions of section 194C of the Act, so as to invoke the provisions of section 40(a)(ia) of the Act. 7. The only issue that came up for our consideration is whether on facts and circumstances of the case the impugned payments are coming within the meaning of works contract as defined u/s 194C of the Act. The Ld. A.R. for the assessee, at the time of hearing submitted that the issue is squarely covered by the decision of coordinate bench of this Tribunal, in the case of Mythri Transport Corporation vs. ACIT (2010) 124 ITD 40. We find that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g of liability Is not the only criteria to decide about the existence of sub-contract, yet this contention of the assessee read with the liability clauses of the work order supports Its submission that the individual vehicle owners are simple hirers of the vehicles As per the provisions of s 194C(2), the sub-contractor should carry out the whole or any part of the work undertaken by the assesses. The dictionary meaning of the words carry out' is to carry Into practice", "to execute, to accomplish It signifies a positive involvement in the execution of the whole or any part of th4 main work by spending his time, money, energy, etc and further taking the risks In carrying on the said activity. In the instant case, there Is no material to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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