9911796707
TMI Blog2012 (3) TMI 562X X X X Extracts X X X X X X X X Extracts X X X X ..... brief facts of the case are that the assessee derives income from plying of passenger vehicles. During the year, the assessee has taken contracts from Indian Oil Corporation Limited, Mathura for providing and operating passenger vehicles on hire basis. The Assessing Officer noticed that the assessee had debited `24,96,000/- as vehicle rent paid to different parties. The Assessing Officer was of the view that the assessee was liable to deduct tax at source under section 194C of the Act but the assessee did not deduct the tax. Therefore, the claim of the assessee is disallowable under section 40(a)(ia) of the Act. The Assessing Officer was also of the view that the case of the assessee is also covered by the provisions of section 194-I of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Assessing Officer however, noted that the provisions of section 194-I of the IT Act would apply in the matter being rent paid to the contractor which provides as under : (prior to amendment w.e.f. 1.10.2009) 194-I Any person, not being an individual or a Hindu undivided family, who is responsible for paying to [a resident] any income by way of rent, shall, at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, [deduct income-tax thereon at the rate of- [(a) ten per cent for the use of any machinery or plant or equipment; and (b) fifteen per cent for the use of any land or building (i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... land; or (b) building (including factory building); or (c) land appurtenant to a building (including factory building); or (d) machinery; or (e) plant; or (f) equipment; or (g) furniture; or (h) fittings, whether or not any or all of the above are owned by the payee;] (ii) where any income is credited to pay account, whether called Suspense account or by any other name, in the books of account of the person liable to pay such income, such crediting shall be deemed to be credit of such income to the account of the payee and the provisions of this section shall apply accordingly.]. The above definition of rent does not provide any item for vehicle hire charges. Therefore, prov ..... X X X X Extracts X X X X X X X X Extracts X X X X
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