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TMI Blog2013 (12) TMI 1046X X X X Extracts X X X X X X X X Extracts X X X X ..... wned by the GAIL and was opened to service to its other clients also, which was in nature of carriage of goods and covered u/s.194C of the IT Act. Gas transportation charges – Held that:- The appellant paid these payments for gas transportation purposes to Gujarat Gas Company Ltd. and avail them facility of pipeline of it. The ownership and complete control of this pipeline is of Gujarat Gas Company Ltd. This pipeline owned by the contractor is open for use for other clients also and it was a work performed carriage of goods as prescribed u/s.194C - It is covered u/s. 194C - The appellant has also submitted the confirmation from the deductee that these receipts have been disclosed in their respective income and all the deductees are lim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,01,588/- which cover uses of plant and machinery and not the provision of 194C of I.T. Act. 4. The Ld. CIT(A) erred in not considering the fact that after 13.7.2006 the provision of 194I is applicable on hiring charges of Gas Transportation charges of ₹ 3,58,44,097/- which cover uses of plant and machinery and not the provision of 194C of I.T. Act. Assessee s C.O. No. 17 /Ahd/ 2011 1. The appellant submits that in case it is found to be an assessee in default u/s 201(1) of the Act, the interest chargeable u/s 201(1A) should be restricted for the period from the date on which TDS ought to have been deposited with the government to the date on which due taxes have been paid by the payees themselves in respect of such p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... act, was fixed basis on rate per km. Vehicles as well as chauffer drivers were under the control of the Contractor. Therefore, these services are covered u/s. 194C of the IT Act. Connectivity charges were in pursuant to the agreement entered into the GPSC payment in this regard was connected with the content transported and not lump sum. Thus, TDS was required to be deducted u/s.194C of the IT Act. Gas transportation charges were paid in pursuant to agreements entered in to Gujarat Gas Company Ltd. to provide services for transportation of natural gas. Since, there is no control over the pipeline from transporter and the contract for transport by any mode other than real way is covered u/s. 194C of the IT Act. The appellant further argued b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed etc. Therefore, the contract is for carrying out of some work for the appellant and it cannot be called a contract where vehicle simplicitor has taken on hire by the appellant. After relying on Rajkot judgment in case of Reliance Industries Limited vs. The ACIT, TDS Circle, Rajkot (ITA No. 387/RJT/2009) A.Y. 2007-08, wherein on similar facts, the Rajkot ITAT has decided such type of payments are governed by the provision of Section 194C not u/s. 194I of the IT Act. Accordingly, the ld. CIT(A) allowed the appeal on first item that vehicle hire charges. Similar findings were given by the ld. CIT(A) on connectivity charges and transportation charges, which is reproduced as under: 3.5 I have heard the learned authorized representative a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ller not liable to be deducted TDS u/s. 194C. v. Chhattisgarh State Electricity Board vs. ITO (TDS) [2012] 18 taxmann.com 150 (Mum.) for transmitting power from NTPC s delivery point to assessee s facilities by PGCIL is covered u/s. 194I or not. Ld. Counsel argued that above case laws squarely applicable in case of the appellant. He also had drawn our attention on page nos. 60 to 64 by which he had proved that deductee had shown these receipts in their income. Thus, there is no revenue loss. 5. We have considered the rival contentions and perused the material on record. The first payment namely vehicle hiring charges has not been prescribed u/s. 194I. Vehicles and Chauffers supplied by the contractor and was under the complete c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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