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TMI Blog2015 (4) TMI 1075X X X X Extracts X X X X X X X X Extracts X X X X ..... ent as a contract to invoke Section 194(c) of the Act. We do not find any material on record to indicate any risk and responsibility being passed over to the payees. That being the case, we observe that a mere hiring job work without any other evidence does not partakes the colour of risk and responsibility forming essential condition of a contract. The assessee’s payees have not been paid in l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e non-deduction of TDS, in proceedings u/s.143(3) of the Income Tax Act (in short the Act ). 2. Facts of the case are in a narrow compass. The assessee-firm is a transporter of goods and carriage. It has its own fleet of vehicles. The assessee hires outside vehicles to perform its contractual obligations over and above its fleet capacity. It had filed its return on 27.10.2005 declaring income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the recipient on hiring basis in transporting the goods. Per Assessing Officer, all these arrangements made on routine basis led to a long, systematic, healthy and mutual relationship to be taken as an agreement. He found that payment made to one of the payee was below ₹ 20,000/-. And also that due TDS had been deducted in case of another payee. The assessing authority accordingly reduce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... non application of Section 194(c)(3)(i) proviso. The Revenue strongly supports the lower authorities orders. It is an undisputed fact that the assessee hires its payee s vehicles on routine basis in case its own fleet is unable to perform the transporting assignments. The authorities below treat such an arrangement as a contract to invoke Section 194(c) of the Act. We do not find any material on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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