TaxTMI 
TaxTMI 
2011 (3) TMI 812
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....section 201(1A) of the Income-tax Act. 2. Briefly, the facts of the case are that the assessee is a local authority and is engaged in development of areas in and around Ahmedabad outside municipal limits. It was seen that the assessee had hired cars on fixed rent payments but TDS was deducted at the rate of 2 per cent treating the same as contract. Since the cars are one type of machinery, and rent is paid at fixed monthly rate, according to the Assessing Officer, TDS is applicable at the rate prescribed under section 194-I of the Income-tax Act. Explanation of the assessee was called for. It was explained that for hiring of cars the provisions of section 194-I of the Income-tax Act are not applicable. The payment is made towards the work ....
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....sport is chartered by one of the entities mentioned in section 194C of the Income-tax Act and work in section 194C of the Income-tax Act continuously remain in the statute book and such interpretation of the provision would not controvert or the general provisions contained in the section. The Assessing Officer, therefore, noted that if the assessee paid the rent for hiring out any machinery then he has to deduct tax at sources under section 194-I of the Act. In the case of the assessee it paid rent and vehicles had to ply for transporting employees from one place to another, therefore, the assessee was required to deduct tax at the rate of 10 per cent,. however, the assessee had deducted TDS at the rate of 2 per cent under section 194C of ....
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.... the Income-tax Act. The learned Counsel for the assessee also raised additional ground of appeal stating therein that the entire amount of tax has been paid by the payee; therefore, there is no loss to the revenue. Copy of the return of the payee is filed on record. 4. On the other hand, the learned DR relied upon the orders of the authorities below. 5. We have considered the rival submissions and the material available on record. The facts noted by the Assessing Officer are not in dispute that the assessee had hired cars on fixed rent payment and TDS was deducted at the rate of 2 per cent treating the same as contract as per section 194C of the Income-tax Act. The Assessing Officer also noted that the assessee had made vehicle hire char....
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.... Catering. The Assessing Officer admitted that the assessee had hired the cars on fixed rent payment owned and maintained by contractor. The assessee paid vehicle hire charges and all the expenditure are borne by the contractor. It is also admitted fact that vehicle charges were paid in connection with plying of employees from one place to another. Thus, it implies that the passengers were transported by the drivers and vehicles of the vehicle owner/contractor and in consideration of that the vehicle owners/contractors were paid by the assessee the fixed amount. Therefore, sub-clause (c) to Explanation (iii) of the provisions of section 194C of the Income-tax Act would apply in the case of the assessee. In our opinion the above payme....
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....here the payee is a person other than an individual or a Hindu undivided family:" Provided that no deduction shall be made under this section where the amount of such income or, as the case may be, the aggregate of the amounts of such income credited or paid or likely to be credited or paid during the financial year by the aforesaid person to the account of, or to, the payee, does not exceed one hundred and twenty thousand rupees: [Provided further that an individual or a Hindu undivided family, whose total sales, gross receipts or turnover from the business or profession carried on by him exceed the monetary limits specified under clause (a) or clause (b) of section 44AB during the financial year immediately preceding the financial year ....