Case Law Details
Assessee not liable to deduct TDS u/s. section 194C(2) on payment of freight charges made to lorry owners who merely placed the vehicles at the disposal of the assessee and never involved themselves in the work to be carried out by the assessee for FCI
ITO Vs. Vijay Bharat Roadlines Pvt. Ltd. (ITAT Delhi) –Whether the assessee was not liable to deduct tax at source as per the provisions of section 194C(2) of the Act , for the payment of freight charges amounting to 1,32,58,651/- made to the lorry owners and consequently, the provisions of section 40(a)(ia) of the Act were not applicable to such payments. Held, Yes the payments in question were made to lorry/truck owners who merely placed the vehicles at the disposal of the assessee and never involved themselves in the work to be carried out by the assessee for FCI.
IN THE INCOME TAX APPELLATE TRIBUNAL
(DELHI BENCH ‘H’ : NEW DELHI)
ITA No. 1963/Del./2010
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