2018 (4) TMI 258

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.... assessee is in support of the order of the Ld. CIT(A). 2. Brief facts of the case are that the assessee company is engaged in the business of handling and transport contractors at Visakhapatnam and consignment agent of RINL, Nagpur. The assessee filed its return of income for the A.Y.2005-06 originally on 01.10.2005 admitting the total income of Rs. 1,33,430/-. Consequent to search and seizure operations in the case of M/s. Maha Maruthi Logistics Private Limited, a notice u/s.153A of the Income Tax Act, 1961 (hereinafter called as 'the Act') was issued on 29.12.2010 and in response to the notice, the assessee filed the return of income on 14.2.2011 admitting the total income of Rs. 1,33,430/-. The assessment was completed u/s. 143....

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....o CONCOR, a company which is engaged in the carriage of goods. Since the payment was not directly made to the Railways, the Ld. D.R. contended that the payment attract the TDS u/s 194C of the Act. Since the assessee failed to deduct the TDS, the A.O. has rightly made the addition, hence, requested to confirm the order of the A.O. 5. On the other hand, the Ld. A.R. argued that as per section 194C of the Act, in explanation (iv)(c), work shall include carriage of goods or passengers or any mode of transport, other than by Railways. Since the CONCOR is a subsidiary organization of the Indian Railways and the Railways have carried the goods, there is no case for TDS u/s 194C of the Act. He relied on the order of the coordinate bench of ITAT, H....

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....f such sum to the account of the contractor or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct an amount equal to- (i) one per cent where the payment is being made or credit is being given to an individual or a Hindu undivided family; (ii) two per cent where the payment is being made or credit is being given to a person other than an individual or a Hindu undivided family, of such sum as income-tax on income comprised therein. ................................... EXPLANATION: For the purposes of this section: ................................... "work" shall include- (a) advertising; (b) broadcasting and telecasting including production of progr....

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....he instant case, the assessee categorically submitted that the payment was made to M/s. Exim Services towards freight charges that too for corn goods_by rail. This claim of the assessee is not disputed by the tax authorities except stating that the payment is not made directly to the railways but to the Agent. In our considered opinion the opening part of Section 194C refers to payments made to contractors but at the some time makes an exception to the payments made to such contractors if that amount has to be utilised for payment of rail fares. if the intention of the legislature was to make the payment directly to the railway authorities, then the exception provided in the Explanation should not have been introduced in Section 194C of the....