2015 (8) TMI 1513

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....e appeals is that the assessee had deducted tax on the payments made for hiring of JCB, Porkland, breaking and bucket machines etc. u/s. 194C. The Assessing Officer was of the view that payment for hiring the said machines is in the form of 'Rent', therefore tax should have been deducted u/s. 194I of the Act. The Assessing Officer made addition for short deduction of tax at source and accordingly, levied interest thereon. In first appeal, the Commissioner of Income Tax (Appeals) deleted the addition by holding hiring of the machines as works contract. The Commissioner of Income Tax (Appeals) further held that the assessee has rightly deducted tax at source u/s. 194C on the payments made. Against these findings of the Commissioner of Income....

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....d JCB, Porkland, breaking and bucket machines on hourly basis. The assessee had made composite payment for excavation of soil, which includes manual work by unskilled labour, use of machinery, transportation of excavated material etc. The assessee had made payment for excavation of soil and hard rock @ Rs. 55 and Rs. 450 per cubic meter. Thus, the payments made for excavation were not simply for hiring of JCB, Porkland etc. The ld. AR further submitted that the supplier of machinery was also required to provide diesel, operator, as well as for repair expenditure. It was the duty and responsibility of the supplier of the machineries to ensure the upkeep and maintenance of the machinery, as also that the work allotted is completed within a sp....

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....s payments made for manual work by unskilled labour, use of machinery and transportation of excavated material. The payments are made on the basis of excavation done in the units of per cubic meter. Before Commissioner of Income Tax (Appeals) the assessee has placed on record receipts/invoices raised by the contractor to support these contentions. The Revenue has not been able to refute the contention of the ld. AR. It is not a case of hiring machines simplicitor. The machines were provided by the contractor with operator. It was the responsibility of the contractor to provide for the diesel, repairs and ensure the upkeep and maintenance of the machines. 7. The ld. AR has drawn strength from the decision of Co-ordinate Bench in the case of....