TaxTMI 
TaxTMI 
2013 (9) TMI 976
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.... appellant has raised following substantial questions of law, for consideration:- i. Whether ITA Tribunal was legally justified in allowing the appeal of assessee holding the assessee itself has not utilized the buses being plant but they were used by the transporters ignoring the provisions of Section 194-I of the Income Tax Act? ii. Whether Income Tax Appellate Tribunal is legally justified in holding that provisions of Section 194-I are not applicable on hiring of vehicles in the cases of assessee, ignoring the provisions of Section 194-I amended w.e.f 01.06.2007 as also not considering the definition of plant provided u/s 43 (3) of the Act? iii. Whether in any view of the matter, the impugned order of Tribunal can sustain in the eyes....
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....s of Section 194-I of the Act has mainly rested his case on the ground that it is the "rent" as defined in explanation under Section 194-I and the assessee has paid rent in respect of buses utilized by him being in the nature of plant. In our opinion, simply for the reason that "rent" being explained under Explanation given u/s 194-I in respect of a plant will not make the relevant payments liable for deduction u/s 194-I. The sum and substance of the transaction has to be seen and it has to be decided that under which Section the case of the assessee would fall. If one goes by the logic adopted by the AO, then the same will also be equally applicable in respect of Section 194-C where also under Explanation-III to sub-section (2) of Section ....
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....e, the provisions of Section 194-I could not be applied to the facts of the present case and it has to be held that assessee has rightly deducted tax at source under the provisions of Section 194-C of the Act. Ground Nos. 2 & 3 raised in both the appeals are allowed." 7. Sri Ashok Kumar has supported the reasoning given by AO, CIT (A), and submits that the word 'plant 'has been defined in Section 43 (3) of the Act, which includes vehicles and thus rent paid for the buses would attract TDS under Section 194-I. He has relied on the judgment in United Airlines Vs. Commissioner of Income-Tax and others [(2006) 287 ITR 281 (Delhi)] in which the Delhi High Court held as follows. "The word "rent" in the aforesaid definition has a wider meaning, ....
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....r XVII, relating to collection and recovery of tax. Even otherwise, it is difficult to believe that the word 'plant' defined in Chapter IV - computation of total income, falling under Section 43 of the Act, includes buses hired by the educational institutions. The definition of 'plant' in sub section (3) of Section 43 of the Act clearly states that 'plant' includes ships, vehicles, books, scientific apparatus and surgical equipment used for the purposes of the business or profession. A plain and general interpretation of 'plant' in Chapter-IV of sub section (3) of Section 43 of the Act would show that it has included the use of ships, vehicles, books, scientific apparatus and surgical equipment for the purposes of Section 28 to 41. We are n....