Case Law Details
CIT Vs. M/s. Pioneer Personalized Holidays Pvt. Ltd (Kerala High Court)
Section 194C of the Act speaks of any payment made to any resident, referred to as a contractor, for carrying out any work including supply of labour, in pursuance of a contract between the contractor and a specified person. Here, the contract if at all, is between the assessee and the principal being M/s. Logos Logistics (P) Ltd. In the case of ITA No. 176 of 2013 between the assessee and the individual persons, who had subscribed to the tour programme. The dis-allowance was with respect to the expenses claimed, in so far as the hiring of vehicles carried out by the respective assessees. The expenses claimed by the assessee were disallowed as a consequence of the non-deduction of TDS and an addition was made, to the extent provided for in Section 40(a)(ia).
The hiring of vehicles, on the conditions above noticed, does not fall within the ambit of Section 194C of the Act. We also notice that from 01.06.2007 definitely deduction would have to be made at source even for hiring of vehicles as Section 194-I of the Act stands amended to bring in such transactions also.
FULL TEXT OF THE HIGH COURT JUDGMENT / ORDER IS AS FOLLOWS:-
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