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TMI Blog2011 (3) TMI 1018X X X X Extracts X X X X X X X X Extracts X X X X ..... and circumstances of the case, the Hon'ble ITAT was right in holding, that assessee was not liable to deduct the TDS as there was no written or oral agreement between the alleged parties; even in the light of amendment in the statute w.e.f. 01.10.2004 in section 194C(3) as per which tax is required to be deducted where total payments made to a person during a financial year for work contract exceeds Rs.50,000/-, and it does not matter whether there is single contract or multiple contract." 2. The assessee hired trucks for its business and made payment for transportation. The Assessing Officer held that the assessee was liable to deduct tax under Section 194C of the Act, in absence of which deductions had to be disallowed under Secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance of a contract for specific period of quantity, all GRs relating to that party or quantity should be aggregated for the purposes of deduction of tax at source. This aspect has also been clarified so by the CBDT Circular No.715 dated 08.08.1995. As per the said circular, the pre-requisite condition for deduction of tax at source is that there must be a contract for the carriage of goods. As per the CBDT Circular, what is most important is a contract for a specific period or quantity for carriage of goods. Undisputedly, in the instant case, there is no material on record brought by the Assessing Officer to prove that there was any written or oral agreement between the assessee and the transporter for carriage of goods. It is only on presu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is no material to show that payment in pursuance to each GR exceeded Rs.20,000/- or payments to one transporter exceeds Rs.50,000/- in the financial year. The Assessing Officer acted only on assumptions that the assessee was having agreement with the parties for continuous transportation/carriage of goods for a specific period or quantity. 10. At this point, we may also refer to para 32 of the order of the CIT(Appeals), where it is observed that "assessee was liable to deduct TDS on these payments where GRs issued by the transporters aggregate more than Rs.50,000/-". Certainly, where the GRs issued by a single transporter exceed Rs.50,000/- in a financial year, provisions of Section 194C are attracted. So, however, factually in this ..... X X X X Extracts X X X X X X X X Extracts X X X X
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