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TMI Blog2012 (11) TMI 540X X X X Extracts X X X X X X X X Extracts X X X X ..... ome Tax Act, 1961. 2. To adjudicate on this appeal, and for the reasons we will set out in a short while, only a few basic material facts need to taken note of. The assessee is an individual, and is engaged in the business of transportation of goods. During the course of business carried on by him, the assessee had to take several trucks on hire, from middlemen or agents of the subcontractor, so as to meet his requirements. It is on these payments that the assessee did not deduct tax at source under section 194 C, and, this non deduction of tax source from payments to the agents of the truck-owners, inter alia, resulted in the impugned disallowance under section 40(a)(ia). In appeal the CIT(A) has confirmed the disallowance. Aggrieved, ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 2008, that individuals were imposed tax deduction obligations under section 194 C(1). The case of the revenue thus hinges on application of section 194 C(2), which, for ready reference, is reproduced below: (2) Any person (being a contractor and not being an individual or a Hindu undivided family), responsible for paying any sum to any resident (hereafter in this section referred to as the subcontractor) in pursuance of a contract with the sub-contractor for carrying out, or for the supply of labour for carrying out, the whole or any part of the work undertaken by the contractor or for supplying whether wholly or partly any labour which the contractor has undertaken to supply shall, at the time of credit of such sum to the account of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the expression "work" shall also include - (a) Advertising; (b) Broadcasting and telecasting including production of programmes for such broadcasting or telecasting; (c) Carriage of goods and passengers by any mode of transport other than by railways; (d) Catering. 7. A plain reading of the above provision indicates that in order to attract the applicability of Section 194C(2), the payment has to be made by a contractor to a sub-contractor for "carrying out or for the supply of labour for carrying out, the whole or any part of the work undertaken by the contractor or for supplying whether wholly or partly any labour which the contractor has undertaken to supply". It is, therefore, a condi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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