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TMI Blog2014 (1) TMI 179X X X X Extracts X X X X X X X X Extracts X X X X ..... nt made by M/s Container Corporation of India Ltd. Noida for hiring of buses, ignoring the fact of the case that the deductor company is liable to deduct the tax u/s 194-I at the rate of 10% for hiring of buses in view of amendment made u/s 194-I w.e.f. 1.6.2007. 1.2. In directing so, Ld CIT(A) has failed to appreciate the following:- i) Section 194-I(a) introduced w.e.f.1.6.2006 is applicable and the Board Circular No.558 dated 28.3.1990 is not applicable as it was issued prior to the introduction of section 194-I. ii) Sub clause (a) of sec. 194-I clearly mention ten percent for the use of any machinery or plant or equipment and section 43(3) provides inclusion of vehicle under plant. Thus the Assessing Officer has applied the provision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee is duly covered by I.T.A. No.2100/Del2011 decided by 'F' Bench of ITAT Delhi and submitted a copy thereof. 6. The Ld DR conceded that the matter was covered by the said appellate order. 7. We have heard the rival submissions of both the parties and have gone through the material available on record. We find that assessee has been deducting tax at source u/s 194C for payments for hiring of cranes etc. The cases of the assessee are covered by the I.T.A. No.2100/Del/2011. The relevant paragraphs are as under:- "20. We have duly considered the rival contentions and gone through the record carefully. Learned First Appellate Authority has gone through the invoices raised by the assessee and thereafter arrived at a conclusi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earned counsel for the assessee on the other hand, submitted that Assessing Officer has misconstrued the provisions. The assessee has not taken the buses on lease. It had entered into a contract of service whereby the travel agencies were required to supply the buses for transportation of the passengers. The buses were to be plied for a fixed number of hours. The vehicles would remain in the possession of the travel agency. The agency would provide its driver and also maintain the vehicle in good shape. In other words, all responsibility for plying the vehicles is of the transporters. Thus, according to the assessee, it was a service contract of transporting the passengers. It has not taken the buss on lease and used them as plant in busine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... broadcasting & telecasting including production of programs for such broadcasting and telecasting; (c) carriage of goods or passengers by any mode of transport other than by railways; (d) x x x, (e) x x x. On the strength of Hon'ble Delhi High Court's decision, he pointed out that once specific provision has been provided then there is no need to apply section 194 I of the Act which is in relation to deduction of TDS on payment of rent. We have duly considered the rival contentions and gone through the record carefully. The first disputed point is whether it is a payment being contract of service or a rent for hiring a plant. The emphasis of the Learned DR was that assessee has hired a bus which is akin to taking a plant on lease, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ontract and assessee was to deduct tax under sec. 194 C of the Act. Considering the order of Learned CIT(Appeals) and in view of the above discussion, we do not find any merit in this appeal. It is dismissed". The facts and circumstances in this case are also not different. The assessee has availed the services of cranes which were operated by the contractee, hence, Assessing Officer has erred in construing that assessee has paid rent and its case falls under sec. 194I of the Act. Respectfully following the order of the ITAT in the light of Hon'ble Delhi High Court's decision in the case of Prasar Bharti reported in 292 ITR 580, we do not find any merit in this ground of appeal. It is rejected. 8. The facts and circumstances of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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