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TMI Blog2015 (8) TMI 1513X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee has rightly deducted tax at source on the payments made for hiring of JCB, Porkland etc. u/s. 194C. The payments made for hiring machines are in nature of works contract and not rent as defined in Explanation to section 194I - No infirmity in the findings of the Commissioner of Income Tax (Appeals). - Decided in favour of assessee. - SHRI R.K. PANDA, AM AND SHRI VIKAS AWASTHY, JM For the Assessee : Shri Suhas Bora For the Revenue : Shri Hitendra Ninave ORDER PER VIKAS AWASTHY, JM : These appeals for assessment years 2008-09 and 2009-10 have been filed by the Revenue against the order of Commissioner of Income Tax (Appeals)-V, Pune dated 24-12-2013 passed u/s. 201(1) and 201(1A) of the Income Tax Act, 1961 (hereinafter referr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee had made payments of ₹ 73,68,490/- for the assessment year 2008-09 and ₹ 1,12,80,994/- in assessment year 2009-10. On the said payments the assessee deducted tax at source u/s. 194C, whereas, the machines were hired by the assessee on hourly basis and the payments for same were in the nature of rent for the hiring the machines. Thus, the provisions of section 194I(a) were applicable. The assessee has erred in deducting TDS at lower rate by applying the provisions of section 194C of the Act. The ld. DR vehemently defended the order of Assessing Officer in making addition on account of short deduction of TDS on payments made for hiring of JCB, Pork land, breaking and bucket machines etc. 4. On the contrary, Shri Suhas Bor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 194C deals with the deduction of tax at source on the payments made to contractors, whereas the provisions of section 194I relates to deduction of tax at source on the payments made in the nature of rent . 6. In the present case, the assessee had hired JCB, Porkland, breaking and bucket machines for excavation of soil. On the payments made for use of said machines, the assessee deducted tax at source u/s. 194C, whereas the contention of the Revenue is that the payments made for the use of machines in the nature of rent , therefore, TDS should have been deducted under the provisions of section 194I(a). It has further been contended by the ld. DR that the payments are made for the use of machines on hourly basis. On the other hand the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d reliance on the decisions of Hon'ble Gujarat High Court in the case of Shree Mahalaxmi Transport Co. reported as 339 ITR 484 (Guj.) and Swayam Shipping Services (P) Ltd. reported as 339 ITR 647 (Guj.). We find that the facts in the present case are similar to the issue decided by the Co-ordinate Bench in the case of Bharat Forge Ltd. Vs. Addl. CIT (supra). 8. In the facts and circumstances of the present case, we are of the considered view that the assessee has rightly deducted tax at source on the payments made for hiring of JCB, Porkland etc. u/s. 194C. The payments made for hiring machines are in nature of works contract and not rent as defined in Explanation to section 194I of the Act. We do not find any infirmity in the findings ..... X X X X Extracts X X X X X X X X Extracts X X X X
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