Section 194C not applies to hiring or renting of equipment

Roy Mitra Enterprise Vs. ACIT (ITAT­ Kolkata), ITA No. 1703 (Kol) of 2009, Date of Pronouncement- 24.2.2012. Explore the Roy Mitra vs. ACIT case (ITA No. 1703/2009) involving Sec. 194C, TDS, and contractual disputes. Key rulings and implications revealed. On perusal of the assessment order we find that the ld. A.O. considered sum of Rs.1,44,91,357/- on the basis of the bill issued by M/s. Bharat Earth Movers as contractual and, accordingly, invoked provisions of Sec.40(a)(ia)/194C of the Act. Section 194C of the Act speaks of payments to contractors and sub-contractors. According to this sect...