TaxTMI 
TaxTMI 
2013 (9) TMI 682
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....Opponent-assessee is a limited company engaged in the business of clearing and forwarding of cargo, shipping agency and other ancillary trading activities. A survey under section 133A (I) of the Incometax Act, 1961 {"Act" for short} was carried out at the business premises of the assesseecompany on 13th February 2007 for TDS verification. During the course of verification, the Assessing Officer found some discrepancies with regard to short deduction of tax at source under various provisions of the Act for the financial year 200607, relevant to the assessment year under appeal. It was noticed that the assesseecompany had made payments towards cargo handling charges to Messrs. Saurashtra Containers Private Limited of Rs. 3,47,720/=; Messrs. B....
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....l, by its impugned judgment and order, dismissed the said appeal. 6. Feeling aggrieved and dissatisfied by the impugned judgment dated 12th April 2013 passed by the Tribunal, the Revenue has preferred the present Tax Appeal, proposing the following substantial questions of law :Page {A} "Whether the Appellate Tribunal has substantially erred in deleting the addition made under section 201 (1) of the I.T Act of Rs. 18,80,471/= and interest charged under section 201 (1A) of the I.T Act of Rs. 9,87,247/= in the case of Balaji Heavy Lifters Private Limited and Samarth Lifters Private Limited by treating the payment of rent under section 194C instead of under section 194I by the Assessing Officer ?" {B} "Whether the Appellate Tribunal has sub....
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....party which is filed by the appellant in paperbook in page Nos. 16 to 18 wherein, the following terms are mentioned : " 1. Party of second part will provide service as and when required by the party of the part and remains in touch with the execution of the cargo handling work under this contract. 2. The party of the Second part will arrange, crane, trailers, manpower for loading, unloading, shifting, transportation, stuffing, etc. of the container or cargo on his own to perform all the required activities relating to cargo handling. The party of the 1st part is not at all concern with use of equipments, trailers, manpower, etc., they are only concerned with the cargo handling by whatever means deemed suitable by the party of the 2nd part....
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.... the 1st part undertakes to pay within a month from receipts of the bill." 8. From the above terms and conditions, it is evident that the work involved is mainly labour oriented work with the help of various machineries and equipments. This work involves providing of man power for loading and unloading, shifting and transportation of the cargo to the destination as well. It is also evident from these terms and conditions that the possession and control over equipments and man power do not vest with the appellantcompany which is a determinant factor so as to decide the applicability of the provisions of Section 194I. The rates for each kind of cargo have also been specified on the basis of the volume of the cargo being handled and not on th....