9911796707
TMI Blog2011 (4) TMI 1382X X X X Extracts X X X X X X X X Extracts X X X X ..... Act,1961. 2. The brief facts on the issue in dispute are that the assessee is a Transport operator and owned nine trucks. It filed its return of income declaring income of ₹9,83,250 along with the Financial Statements duly audited u/s.44AB. During the course of assessment proceedings, the Assessing Officer observed that the assessee being a transport contractor had paid truck hiring charges amounting to ₹1,38,14,103 on having earned transport contract receipt from Tata Sponge Iron & others who had subjected the payment to the assessee for TDS amounting to ₹4.7lakhs on gross billings of ₹3.89 Crores. The Assessing Officer observed that the payments made for truck hiring by the assessee to petty transporters did not r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction therefore was acceptable to the Assessing Officer to indicate that the plethora of judgments relied upon by the assessee that TDS has to be deducted only when a written or oral contract has been made on the basis of transport charges claimed. The facts as noted by the Assessing Officer indicate that there cannot be any implied contract for execution between the assessee and his wife for transporting the goods when the assessee himself owns nine trucks. Having allowed the expenses claimed for making payment to other truck owners, the Assessing Officer erred in identifying the amounts paid to the assessee's wife on four trucks which has been paid on the actual freight carried by the wife Smt. Anju Sahu's trucks by giving the dates, veh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate entity holding Permanent Account Number filing returns under the provisions of Section 44AE was to be taxed on the basis of a oral or implied agreement. 4. The learned DR opposed the contention of the assessee's Counsel by indicating that the assessee being a transport contractor was subjected to on non-deduction of tax at source whether oral contract with the remaining truck owners for transporting the goods was a part of expenditure to be claimed accordingly and allowable. The Assessing Officer had clearly noted that the assessee had paid ₹18,91,264 to his wife being a transporter in her own right owning four trucks was not required to deduct tax at source as was not done therefore properly disallowed u/s.40(a)(ia). 5. We hav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yet this contention of the assessee read with the liability clauses of the work order supports its submission that the individual vehicle owners are simple hirers of the vehicles. As per the provisions of s. 194C(2), the sub-contractor should carry out the whole or any part of the work undertaken by the assessee. The dictionary meaning of the words "carry out" is to "carry into practice"; "to execute"; "to accomplish". It signifies a positive involvement in the execution of the whole or any part of the main work by spending his time, money, energy, etc. and further taking the risks in carrying on the said activity. In the instant case, there is no material to suggest that the other lorry owners involv ..... X X X X Extracts X X X X X X X X Extracts X X X X
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