2018 (10) TMI 727

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....'the Act'. Heard both the parties. Case file perused. 2. The assessee's sole substantive ground pleaded in the instant appeal challenges correctness of the CIT(A)'s action partly affirming the assessing authority's findings holding it to be an assessee in default for short deduction of TDS of Rs.9,48,336/- along with interest of Rs.4,55,207;totalling to Rs.14,03,527/-; respectively 201(1) & 201(1A) as follows:- "4. The AO has record the short deduction of tax us. 194I of R.9,48,336/ and interest thereon of Rs. 4,55,207/- aggregating to Rs. 14,03,537/-. The order was passed exparte as the appellant did not respond to the AO's notice. In appeal the grounds have been raised against the said levy of tax and interest. The subm....

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....appellant that hiring charges of machinery, dozers and tractor being composite one including the supply of operators. Sec. 194I and Sec. 194C cannot be attracted, is not correct. Machines have admittedly been hired and charges therefore have been paid by the appellant. Small amounts are shown as transport charges. Both from the details it is quite apparent that the amounts involved are substantive for hiring of various machines. By way of transportation charges only Rs. 1,23,692/- is shown to have been paid in its submission dt. 17.07.2015. Thus the appellant's claim that Sec. 1941 is not applicable is not correct. As regards provisions u/s. 194C it can be said to be applicable only to a small amount being Rs. 1,23,692/- as per the appellan....

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....c. 194I and sec. 194C are rejected. On grounds concerning payees being individuals//HUFs, the appeal order is treated as partly allowed for statistical purpose a the rates have to be reduced according to the status of the resident as may be determined in pursuance of the enquiry directed as above." 3. Some key facts emerge from the instant case file. There is no dispute even as per assessee's stand that it had entered into contract with its principal followed by its sub-contracts with the payee parties. We make it clear that it has not placed on record the said sub-contracts indicating it to have not passed over the corresponding liabilities to the payees concerned. We make it clear that sec. 194C of the Act in assessment year 2007-08 qu....