TaxTMI 
TaxTMI 
2012 (9) TMI 763
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....letter, he prayed that ITA No.2189/Del/2011 is time barred by four days. This appeal has been filed under mistake and the same be dismissed as withdrawn. Learned DR has brought this letter to our notice. Considering the prayer made by the revenue, ITA No. 2189/Del/2011 is dismissed as withdrawn. The grounds of appeal taken by the revenue are not in consonance with Rules 8 of the ITAT's Rules, they are descriptive and argumentative in nature. In brief, the grievance of the revenue is that Learned CIT(Appeals) has erred in holding that the assessee was required to deduct TDS under sec. 194C on the payments made for hiring of busses instead of under sec. 194(i) of the Income-tax Act, 1961 applied by the Assessing Officer. 2. The brief facts....
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.... it in ITA No. 5885/Del/2010 in the case of ACIT(TDS), Noida vs. M/s. National Capital Power Station, NTPC Ltd. The question considered by the ITAT in that case reads as under: "In brief, the solitary issue is whether assessee has to deduct TDS under section 194C or 194I of the Income-tax Act, 1961 on the payments made to the transporters who have plied their busses for transporting the employees and their wards to different destination as per the agreement between the assessee and the transporters. 5. The ITAT noticed the contentions of the Learned DR as well as of the assessee in paragraph 4 and thereafter adjudicated the issue. These paragraphs are worth to note, they read as under: "4. Learned DR while impugning the order o....
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....issioned category" for which the assessee had been deducting the tax at source under sec. 194C by treating them as contract payment. Assessing Officer alleged that it is fee for professional services or fee for technical service within the ambit of sec. 194J and, therefore, assessee ought to have deducted TDS under sec. 194J of the Act. Learned CIT(Appeals) dismissed the appeal of the assessee. The issue travelled to the ITAT. The ITAT has observed that Explanation 3 of section 194C provides the meaning of expression "work" which includes advertising, broadcasting and telecasting including production of programming for such broadcasting and telecasting. According to the ITAT, a specific provision has been made in sec. 194C which bring withi....
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....e bus for a fixed number of hours. Thus, it is a simplicitor service contract for transportation of the passengers and it falls within the ambit of clause (c), Sr. No.(IV) of explanation appended to sec. 194C. The assessee has placed on record copy of a letter of award for hiring of busses. It has also placed on record copy of the contract entered on Ist of February 2008. On perusal of these documents, it reveals that assessee has just hired the transportation facilities which is akin to hiring of a taxi though on regular basis for a fixed number of hours. Before the Learned First Appellate Authority, assessee has made a reference to Circular No. 558 dated 28.3.1990 issued by the CBDT. In the circular, board has considered this aspect and w....