2014 (8) TMI 462

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....ing that provisions of Section 194-I will not apply in the present case specially when all the ingredients of Section 194-I are satisfied. B. Whether the ITAT erred in law in applying Section 194-C of the IT Act when 194-C only deals with contract and subcontracts. C. Whether the ITAT erred in law in not considering the amendment made under Section 194-I w.e.f. 1.6.2007 which includes income paid/credit on account of machinery/plant & machinery/equipment has been covered and also includes rents which in this present case has been paid by the assessee to various persons. D. Whether the ITAT erred in law in interpreting the definition of plant under Section 43(3). E. Whether the ITAT erred in law in ignoring the AO's order reg....

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.... between the owner of buses and the State Road Transport Corporation, the circular provided as follows: "...The Board has been advised that the applicability of the provisions of Section 194C will have to be examined with reference to the terms and conditions of each contract. In a case where the Board has occasioned to examine this issue, the terms and conditions governing the contract between the owner of the buses and State Road Transport Corporation were, inter alia, as follows:- (i) The owner of the bus shall give his bus on hire to the corporation for plying on notified routes. (ii) The owner shall provide a driver with a valid license and P.S. Badge for the vehicle supplied by him, who shall follow the instructions of the au....

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....lar No. 681 dated 8 March 1994 in which it was stated that Section 194-C would apply to all types of contracts for carrying out any work including transport contracts and that the term 'transport contracts' would cover contracts for the plying of buses. In the present appeals, as the Tribunal has noted, the buses belong to the contractor and were provided on hire to UPSRTC. The payment was to be made on kilometer basis. The contractor was responsible for bearing running cost, maintenance and incidental expenses including the salary of the driver. The contract contained a specific stipulation in respect of the total distance which could be traversed on any given operating day. The contract also provided that the vehicle would run on ....