2011 (11) TMI 495

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.... extracted from ITA No.5773/Mum/2010 for assessment year 2007-08 are that the assessee company is engaged in the business of civil engineering and architecture consultancy. In this case, a survey u/s.133A of the Income-tax Act, 1961 (the Act), was conducted at the assessee's premises on 3-3-2008. It was found that the assessee has not deducted/short deduction of tax at source on professional charges and hiring charges. The AO issued show cause letter to the assessee to explain as to why the assessee should not be treated as an asessee in default and why an order u/s.201(1) should not be passed treating the asessee in default and also why interest u/s.201(1A) should not be levied. In the absence of any compliance by the assessee, the AO rais....

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....s on Rs.7,71,276/- without considering CBDT's circular no.4/2008 dated 28.04.2008."   4. At the time of hearing, the ld. D.R. supports the order of the AO.   5. On the other hand, the ld. counsel for the assessee submits that the issue stands covered in favour of the asessee by the various decisions of the Tribunal, namely:   1. ACIT (TDS)- 1(1) v. Accenture Services P.Ltd., 44 SOT 290 (Mum);.   2. Tata AIG General Insurance Co. v. ITO (OSD)-3(2), 43 SOT 215 (Mum) (Mum - Trib, ITA 6282 to 6285 and 6410, 6413/Mum/2009).   3. Mukeshs Travels Co. v. ITO (2011) 39((II) ITCL 583 (Ahd "B" - Trib, ITA No. 2594/AHD/2010).   4. Ahmedabad Urban Development Authority vs. The ACIT (2011) 39(II) ITCL 591 (....

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....a time and/or mileage. The contractors mostly raise periodic monthly bills for convenience sake showing hire charges for number of days used and for overtime/additional km. charges. No separate rate is paid or bargained for driver services. The running of vehicles is looked after by the transport contractors including cleaning and maintenance etc. After duty hours, the driver takes away the car and report back on next day at given time, if required, and for this a log book is also maintained. We further find that the possession of the vehicle is also with the service provider. It is not the case of the Revenue that the vehicle has been transferred to the assessee or the same is not in the possession of the service provider. The ld. CIT(A), ....

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....ghtly deducted tax as per provisions of section 194C and there is no case of short deduction. Accordingly, this ground of appeal is decided in favour of the appellant".   7. In all the cases relied on by the ld. counsel for the assessee, it has been held that the payment of vehicle hire charges clearly falls within the scope of sec. 194C of the Act. In a recent decision in the case of Ahmedabad Urban Development Authority v. ACIT in ITA No.1637/Ahd/2010 for assessment year 2009-10 dated 10-3-2011, the Tribunal, after considering the provisions of sections 194C and 194-I, relied on the decision in the case of Mukesh Travel Co. v. ITO in ITA No.2594/Ahd/2010 dated 25-2-2011 and observed and held that passengers were transported by the....