CA Agarwal Sanjay ‘Voice of CA’,     CA Vijay Kumar Gupta

History- This section was introduced long back in 1972 and thereafter amended many times. The scope of the said provision has been explained vide circulars Nos. 86 dated May 29, 1972, 93 dated 26.9.1972, 558 dated 28.3.1990,681 dated 8.3.1994,714 dated 3.8.1995, 723 dated 19.9.1995, 715 dated 8.8.1995 and 13 dated 13.12 2006. This section has been substituted by Finance (No 2) Act 2009. 

MEANING OF ANY PERSON RESPONSIBLE FOR ANY SUM

Cargo linkers 179 Taxman 151/218 CTR 695
The assessee is a partnership firm who collects freight charges from the exporters who intend to send the goods through a particular airline and pays the amount to the airline or its general Sales Agents and for the services rendered, the assessee charges commission from the airlines. According to the AO, the assessee was liable to deduct tax at source on the payments made to the airlines.

The Hon’ble DHC held , “We are in agreement with the order passed by the Tribunal which has mainly decided an issue of fact, namely, the nature of the contract between the parties concerned. It has also been found as a matter of fact that the contract is actually between the exporter  and the airline and the assessee is only an intermediary. Therefore, it is not a “person responsible” for deduction of tax at source in terms of s. 1 94C of the Act.”

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