2011 (1) TMI 797

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....nal is right in law and on facts in confirming the order passed by the CIT(A) in deleting the order passed under section 201(1) r.w.s. 194C(1) of the I.T. Act of Rs.6,33,353/-?"   2. The assessment year is 2007-08. The facts stated briefly are that during the course of TDS verification, it was found that the assessee had taken cranes/trailers on rent from various transport companies and handling agents. According to the Department, though the cranes and trailers were taken on hire, TDS under section 194C of the Act was made from such payment whereas the same was required to be made under section 194I. Accordingly, the Assessing Officer passed an order under section 201 read with section 194I of the Act and raised a demand of Rs.6,33....

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....nature of contracts, the assessee had produced various bills which showed that the contracts were mainly carried out for shifting of goods from one place to another. Charges were collected on the basis of the quantity of goods transported and number of trips carried out. It was also the case of the assessee that it had not acquired dumpers on rent or lease and that the possession and control of the vehicles was with the parties and not with the assessee. The parties had only provided services of shifting the goods from one place to another. In the aforesaid backdrop, after considering the facts of the case in the light of the provisions of section 194C of the Act, the Commissioner (Appeals) was of the view that when the transportation contr....

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....x at source where any person who is responsible for paying to a resident any income by way of rent where as section 194C of the Act makes provision for deduction of tax at source where any person is responsible for paying any sum to any resident for carrying out any work including supply of labour for carrying out any work in pursuance of a contract between the contractor and a specified person. In the facts of the present case, there is nothing to indicate that the assessee has taken trailers/cranes on rent so as to attract the provisions of section 194I of the Act. The assessee had given sub-contracts for transportation of goods. In the circumstances, the said transactions would fall within the purview of section 194C of the Act as the as....