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TMI Blog2016 (1) TMI 1447X X X X Extracts X X X X X X X X Extracts X X X X ..... is crystal clear that the transport contractor is not required to be the owner of goods carriage for applicability of section 194C(6) of the Act. At this stage, we may observe here that an amendment has been made vide Finance Act, 2015 in section 194C (6) wherein it is specifically stated that w.e.f. 1.6.2015, the benefit of non deduction of tax on payment made to transport contractors would be applicable only if the transport contractor owns ten or less goods carriages at any time of the previous year and a declaration to this effect is furnished. In our opinion, the Legislature has intentionally inserted the ownership condition for claiming the benefit of non deduction of tax which was not existing in the erstwhile section 194C(6) of the Act. In view of the above discussion, the assessee (Person responsible) cannot be treated as assessee in default for not deducting tax on the payments made to the Bilaspur District Truck Operators Co-operative Society thus, we do not find any infirmity in the order of CIT(A) and accordingly we uphold the same. The appeal of the Revenue is dismissed. - Shri H.L.Karwa, Hon'ble Vice President And Ms. Rano Jain, Accountant Member Appellant By ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 194C on payments made to Bilaspur District Truck Operators Co-op Transport Society Ltd. In response to the same, the assessee vide letters dated 19.10.2013 and 11.11.2013 filed their detailed submissions. Disregarding the submissions made by the assessee, the ITO (TDS) Palampur passed an order u/s 201(1) / 201(1A) dated 14.11.2013 raising a demand of ₹ 7,94,760./-, ₹ 26,66,800, ₹ 90,67,947/- and ₹ 81,67,507/- (inclusive of interest u/s 201(1A) for the assessment years 2010-11, 2011-12, 2012-13 and 2013-14 respectively. 3. Aggrieved by the order of the Assessing officer, the assessee carried the matter in appeal before the CIT(A). The main contention of the assessee before the CIT(A) was that in order to carry out the transportation of the cement, the assessee had entered into an agreement with the Bilaspur District Truck Operators Co-op Transport Society. The reason for creation of the society was only to ensure equitable distribution of work amongst the individual truck operators. The said society is registered under Himachal Pradesh Cooperative Societies Act, 1968. It was also stated that one of the main objects of transport cooperative societies is to c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d/2015 vide order dated 29.10.2015 for the assessment years 2012-13 and 2013-14 wherein similar issue was involved. In the above case, the Assessing officer passed order u/s 201(1) read with section 201(1A) of the Act on 11.3.2014 creating a demand of ₹ 3,54,02,834/- for the assessment year 201213. The Ld. CIT(A) Chandigarh vide his order dated 29.04.2015 deleted the demand created u/s 201(1) and 201(1A) of the Act observing as under:- 5. On appeal, the CIT(A) deleted the demand created u/s 201(1) and 201(1A) of the Act, observing as under:- 5. I have considered facts of the case. As the demand created u/s 201(1)/(1 A) in respect of payments made to H.P. Ex-Servicemen Corporation has been reduced to 'nil', the dispute remains only in respect of payments made to Bilaspur District Truck Operators Co-operative Transport Society Ltd. For appreciating the issue in proper prospective, it would be appropriate to reproduce relevant provisions of this Act. Hence, for the sake of ready reference, provisions of section 194C(6) and Explanation-(ii) below section 194C(7), provisions of section 44AE{1) and Explanation below section 44AE(7) of the Act are reproduced below: 194C. Pay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ;goods carriage' is assigned meaning as per section 2(14) of the Motor Vehicles Act, 1988. Section 2(14} of Motor Vehicles Act, 1988 defines goods carriage as - 'goods carriage1 means any motor vehicle constructed or adapted for use solely for the carriage of goods, or any motor vehicle not so constructed or adapted when used for the carriage of goods . PAN is furnished by the contractor to the payer i.e. deductor. The deductor furnishes before the Income Tax Authority the details pertaining to the above contractor in the prescribed form. 5.2 In the instant case, the appellant had obtained PAN from the payee and furnished the same before the prescribed authority. Further, the goods carriages involved also satisfied the definition given in the Motor Vehicles Act. Therefore, the only issue to be decided is whether the payee i.e. Bilaspur District Truck Operators Co-operative Transport Society Ltd (hereinafter referred to as 'Society5) was engaged in the business of plying, hiring or leasing of goods carriage. The appellant has filed a copy of bye-laws of this Society, a perusal of which reveals that the main object of this Society is to provide goods and passenger carriag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Bilaspur District Truck Operators Co-operative Transport Societies Ltd. wherein the main object of the society is to provide goods and passenger carriages on hire or lease. The transport co-operative society has also furnished its PAN number to the assessee, a copy of the same is available at page 44 of the assessee s paper book. It is claimed that in terms of Rule 31A(4)(v), the assessee has also furnished particulars of amount paid or credited to the transport cooperative society on which tax has not been deducted in its quarterly TDS return. Shri Soumen Adak, Ld. Counsel for the assessee submitted that the goods carriage involved also satisfies the definition of goods carriage given in Section 2(14) of the Motor Vehicle Act, 1988. The term goods carriage means any motor vehicle construed or adopted for use solely for the carriage of goods or any motor vehicle not so constructed or adapted when used for the carriage of goods. 7. In our view, the Ld. CIT(A) has correctly observed that the inference drawn by the Assessing officer that for the purpose of claiming the benefit of sub section (6) of section 194C, the assessee is required to satisfy the ownership criteria mentioned in E ..... X X X X Extracts X X X X X X X X Extracts X X X X
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