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TMI Blog2014 (7) TMI 247X X X X Extracts X X X X X X X X Extracts X X X X ..... ho are also responsible for making all other arrangements, the nature of contract entered cannot be termed as contract for hiring of the vehicles - the provisions of Sec.194I of the Act are not applicable since the expression plant and machinery used in explanation to Sec. 194I refers to plant and machinery used by the assessee in its business by hiring them but not hiring of transport services. As per the transport contracts, the activity of transport contractor will be a simple activity of carriage of its school children by any mode of transport other than by railways - transport contracts would be covered by Sec. 194C and not Sec. 194I – Relying upon ACIT (TDS) Versus Delhi Public School [2014 (1) TMI 176 - ITAT DELHI] - the provision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s under :- 1. The CIT (A) has erred in law and on facts in deleting the addition (Rs.7,56,476/- in Assessment Year 2008-09 and ₹ 9,34,268/- in Assessment Year 2009-10) on account of short deduction in directing that provisions contained in section 194C is applicable on the payment made by assessee for hiring of buses, ignoring the fact of the case that the deductor company is liable to deduct the tax u/s 194I at the rate of 10% for hiring of buses in view of amendment made u/s 194 I w.e.f. 01.06.2007. 2. The CIT(A) has erred in law and on facts in deleting the addition (Rs.7,56,476/- in Assessment Year 2008-09 and ₹ 9,34,268/- in Assessment Year 2009-10) on account of short deduction without appreciating the fact that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rvision and control of the transport service providers and in case of late running of buses more than 30 minutes school authorities reserve the right to levy penalty of ₹ 500/- per pay to the service provider as per the rate mutually agreed between the parties. Based on the above, it clearly emerges that the contract entered by the Appellant with the transport service provider is primarily in the nature of transport contract/service contract for providing travel facility of school children to and from the School of the assessee and not for hiring the vehicles. It also needs to be emphasized that the appellant itself has not utilized the vehicles but they were used by the transport contractors for fulfilling the obligations set out ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n it was held by Delhi Bench of ITAT that in a case of hire of buses by a school to transport school children, section 194C and not section 194I would apply In support of its contention the appellant besides citing above decision, has also cited and relied upon following Board's circulars : i. Circular No. 681 dated 8/3/1994 ii. Circular No. 558 dated 28/3/1990 I have carefully gone through the provisions of section 194C and above-mentioned circulars issued by CBOT. I have also gone through the judgment which have been brought to my notice by the appellant. In my view the appellant's case is squarely covered by the judgment as cited and relied upon by the appellant above, wherein it has been held that the provisions of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provisions of section 194C of the Act, the appellant shall not be treated as assessee in default under section 201 (1) of the Act and also not liable for any levy of interest under section 201 (1A). Therefore, the demand raised for alleged shortfall and also the interest charged under section 201 (1) /201 (1A) of the Act is directed to be reversed. In the latest decision of ITAT, Delhi Bench in the case of ACIT (TDS) vs. Delhi Public School in ITA Nos.4878 4879 (Delhi) of 2012 dated 24.05.2013, the ITAT has also granted the relief to the assessee by relying on the decision of ITAT in the case of Lotus Valley Education Society vs. ACIT (TDS) reported in (2011) 46 SOT 77. We find that various coordinate Benches of the ITAT have decide ..... X X X X Extracts X X X X X X X X Extracts X X X X
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