TMI Blog2002 (7) TMI 30X X X X Extracts X X X X X X X X Extracts X X X X ..... ground of it being ultra vires section 194C of the Income-tax Act, 1961 - The argument that inasmuch as the Finance Act, 1995, was enacted authorising the deduction even for mere transportation of goods, and as such, the circular is deemed to have been ratified by Parliament is also liable to be rejected, for the reason that the said Finance Act, 1995, which came into effect from July 1, 1995, is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... centage of amount as income-tax. This can be called as tax deduction at source. The assessees, who are transport contractors and entitled for payment for carriage of goods, were aggrieved by the action of the income-tax authorities in seeking to deduct the amount at source by invoking section 194C of the Act. Their contention was that the circular, which has been issued authorising tax deduction a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the above section, and mere carriage of goods was not at all included in the said Explanation. Interpreting the same, a Division Bench of the Bombay High Court in Bombay Goods Transport Association v. CBDT [1994] 210 ITR 136 took the view that the substantive provisions in section 194C do not make mere transportation of goods exigible to deduction at source, and the circular cannot authorise for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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