TDS on Vehicle Hire is applicable party-wise and not trip-wise

CIT (Appeals) was not correct in law that the assessee will be liable to deduct the TDS if the amount of a single contract exceeds Rs. 20,000/-. The contract has to be looked into party-wise not on the basis of the individual GR. In our opinion, all the payments made to a truck owner throughout the year are to be aggregated to ascertain the applicability of the TDS provision. RELEVANT EXTRACT OF ITAT JUDGMENT 4. Further, the AO called upon the assessee to show cause as to why despite the fact that the assessee had made payments in the nature of hire charges for goods carriage vehicles, which w...