TMI Blog2017 (3) TMI 877X X X X Extracts X X X X X X X X Extracts X X X X ..... machinery and equipment owned by lender, i.e., M/s Jaiprakash Associates Ltd. Since these machineries and equipments are of big size, for the purpose of their operation requisite staff etc. was to be provided by lender but hirer was to make payment of only hire charges. The assessee was not under an obligation to carry out the work as it was not under the control of the lender and the possess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... k Mathur For the Respondent : Namit Sharma ORDER 1. Heard Sri Alok Mathur, learned counsel for appellant and perused the record. 2. This appeal under Section 260A of Income Tax Act, 1961 (hereinafter referred to as the Act, 1961 ) has arisen from judgment and order dated 09.08.2011 passed by Income Tax Appellate Tribunal, Lucknow Bench 'B', Lucknow (hereinafter referred t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... their operation requisite staff etc. was to be provided by lender but hirer was to make payment of only hire charges. Construing aforesaid agreement Tribunal in para 16.1 has observed as under: 16.1 From the above provisions it is clear that the said provisions are applicable when the contract is entered into (i) for carrying out any work and (ii) for supply of labour to carry out any work. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case, as such no disallowance was called for u/s 40(a)(ia) of the I.T. Act. 5. It also relied on Madras High Court's decision in CIT Vs. Poompuhar Shipping Corporation Ltd., 2006(282) ITR 3 wherein Court had said: Under section 194C of the Income-tax Act, 1961, the tax is to be deducted when a contract is entered into for carrying out any work in pursuance of a contract between the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of agreement for hire, quoted in assessment order but after reading same could not dispute that findings recorded by Tribunal cannot be said to be erroneous inasmuch as entire agreement talks of only hiring of machines in running position and hiring charges were for running condition of machines and equipments. 8. In view thereof we affirm the view taken by Tribunal and answer the substantial q ..... X X X X Extracts X X X X X X X X Extracts X X X X
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