2016 (7) TMI 113

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....AKIL KURESHI) 1. While admitting the appeal following question of law was framed: "Whether the Appellate Tribunal is right in law and on facts in deleting the order passed under section 201(1) read with section 194C of the I.T.Act of Rs. 21,09,572/- and interest charged under section 201(1A) of Rs. 11,65,542/- of the IT Act for A.Y.2003-2004 by the Assessing Officer. Though there was a contract....

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....Appeals), after calling for multiple remand reports, believed that the charges were for renting or hiring of equipments such as earth-movers, JCB machines, loader-machines, mixture machines etc. He was of the opinion that, if the Assessing Officer thought that expenditure was not genuine, the entire expenditure could have been disallowed, however, not with the aid of Section 194C of the Act since ....

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....stood at the relevant point of time. It is only from 01.06.2005 that hire charges in respect of equipments attract the provisions of section 194C. The Explanation for the purposes of clause(i), "goods carriage" shall have the same meaning as in the Explanation to sub section (7) of section 44AE. Therefore, the hire charges would within the purview of section 194C only with effect from 01.06.2005. ....

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....s filed by the recipients of the hire charges and paid taxes thereon. Therefore, in our humble opinion, the ld. CIT(A) is justified in cancelling the order passed u/s./ 201(1) & 201(!A) of the Act." 3. The Revenue also does not seriously dispute that prior to 01.06.2005, as Section 194C stood, requirement of deducting tax at source of higher charges for hiring equipments did not arise. We have no....