The ACIT,TDS Circle, RAJKOT-GUJARAT V. M/s. Aditya Marine Ltd., GANDHIDHAM

ITA 12/RJT/2013

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 67212 (ITAT-RAJKOT)
• Duration Of Justice: 3 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-04-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 10-04-2013
• Assessment Year: 2007-2008
• Appeal Filed On: 10-01-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AVINASH KUMAR JN
• Assessee Lawyers: D R ADHIA N
• Keywords: Corroborative evidences
• Section: 194C; 201(1)

Judgement Text

' R, IN THE INCOME TAX APPELLATE TRIBU N AL; RAJKOT BENCH, RAJKOT. A.. O, UR O . . O , O BEFORE SHRI T. K. SHARMA, JM AND SHRI D. K. SRIVASTAVA, AM IT A NO . 12 /RJT/20 1 3 . 1 1 / ASSESSMENT YEAR 200 7 - 08 ASSISTANT COMMISSIONER OF INCOME TAX TDS CIRCLE RAJKOT ( 0 / APPELLANT) VS. M/S ADITYA MARINE LTD, PLOT NO.36, SECTOR 9A, FIRST FLOOR, 11,12,13, DHIRAJ CHAMBER, GANDHIDHAM, KUTCH. PAN:AAECA825 7C T0 / RESPONDENT N / REVENUE BY SHRI AVINASH KUMAR 1JN / ASSESSEE BY SHRI D R ADHIA N ' /DATE OF HEARING 10.4.2013 N ' / DATE OF PRONOUNCEMENT 12. 4. 2013 / ORDER A.. O, UR 2013 / T. K. SHARMA, J. M. TH IS APPEAL BY THE REVENUE IS AGAINST THE ORDER DATED 25.10.2012 OF CIT(A) - II, RAJKOT FOR THE ASSESSMENT YEAR 200 7 - 0 8 . 2. FACTS IN BRIEF ARE THAT THE ASSESSEE IS A PRIVATE LIMITED COMPANY ENGAGED IN THE BUSINESS OF CLEA RING AND FORWARDING OF CARGO, SHIPPING AGENCY AND ANCILLARY TRADING ACTIVITIES . A SURVEY ACTION U/S 133A(I) OF THE INCOME TAX ACT, 1961 (FOR BREVITY THE ACT) WAS CARRIED OUT AT THE BUSINESS PREMISES OF THE ASSESSEE - COMPANY ON 13.2.20 0 7 FOR TDS VERIFICA TION. DURING THE COURSE OF VERIFICATION, THE AO FOUND SOME DISCREPANCIES REGARDING SHORT DEDUCTION OF TAX UNDER THE VARIOUS PROVISIONS OF ACT FOR THE FINANCIAL YEAR 2 0 06 - 07 RELEVANT TO THE ASSESSMENT YEAR UNDER APPEAL. IT WAS NOTICED THAT THE ASSESS EE COMPANY HAD MADE PAYMENT TOWARDS CARGO HANDLING CHARGES TO M/S SAU RA SHT RA CONTAINERS PVT.LTD OF RS.3 , 47 , 720/ - , M/S BALAJI HEAVY LIFTERS (P) LTD. OF RS.66 , 46 , 038/ - AND M/S SAMARTH LIFTNE R S (P) LTD OF RS.21 , 29 , 370/ - AND THE TDS MADE U/S 194C RATH ER THAN U/S 194 - I OF T HE ACT. ACCORDING TO THE DEPARTMENT THE ITA NO.12/RJT/2013. 1 1 / ASSESSMENT YEAR 2007 - 08 2 TDS MADE UNDER THE PROVISIONS OF SECTION 194C INSTEAD OF SECTION 194 - I FOR THE FINANCIAL YEAR UNDER CONSIDERATION ON PAYMENT OF RS.92,46,481/ - IN THE ABOVE THREE CASES AND TOTAL SHORT DED UCTION WAS WORKED OUT TO RS.19,50,696/ - . THE AO ACCORDINGLY PASSED THE ORDER U/S 201(1) R.W.S. 194 - I AND U/S 201(1A) OF THE ACT ON 24.3.2011 RAISING THE DEMAND OF RS.29,74,811/ - INCLUDING THE APPLICABLE INTEREST RELYING UPON THE DECISION OF THE RAJK OT BENCH OF THE TRIBUNAL IN THE CASE S OF RELIANCE INDUSTRIES LTD, RELIANCE PORT TERMINALS LTD, RELIANCE PETROLEUM LTD AND RELIANCE ENGINEERING ASSOCIATES PVT.LTD IN ITA NO.387,406,386, 388,407/ RAJ/2009 DATED 26.5.2010, FOR THE ASSESSMENT YEAR 2007 - 08 IN WHICH THE TRIBUNAL HELD THAT THE PAYMENTS OF SIMILAR NATURE TO BE COVERED BY THE PROVISIONS OF SECTION 194 - I. 3. ON APPEAL, IN THE IMPUGNED ORDER, THE LD. CIT(A) UPHELD THE ACTION OF THE AO HOLDING THAT CARGO HANDLING CHARGES AS RENT U/S 194 - I IN CASE OF M/S SAURASHTRA CONTAINERS PVT.LTD. HOWEVER, IN RESPECT OF CARGO HANDLING CHARGES PAID TO (I) M/S BALAJI HEAVY LIFTERS (P) LTD AND (II) M/S SAMARTH LIFTNERS (P) LTD , THE LD. CIT(A) HELD THAT IT IS A WORK CONTRACT U/S 194C OF THE ACT. 6 . IN THE FIRST GROUND OF APPEAL, THE APPELLANT HAS CHALLENGED THE ACTION OF THE AO FOR APPLYING PROVISIONS OF SECTION 194 - I ON THE PAYMENT MADE ON ACCOUNT OF CARGO HANDLING CHARGES TO M/S SAURASHT R A CONTAINER FREIGHT STATION PVT LTD. I HAVE CONSIDER ED THE CONTENTIONS OF THE AO AND THE SUBMISSIONS OF THE AR OF THE APPELLANT ON THIS GROUND. THE AO HAS WORKED OUT SHORT DEDUCTION ON THIS TRANSACTION AT RS.70,225/ - . IN THE WRITTEN SUBMISSIONS , THE AR OF THE APPELLANT HAD STATED THAT THE APPELLANT HAD AGREED TO THE APPLICABILITY OF SEC TI ON 194 - I TO GROUND RENT CHARGES ONLY AND FOR THE REMAINING CHARGES OF CONTAINER HANDLING, AS IT HAS NOTHING TO DO WITH RENT OR ANY FIXED CHARGES , THE AO WAS NOT JUSTIFIED IN RAISING THE DEMAND. HOWEVER, IT IS SEEN FR OM THE RECORD THAT NO SUPPORTING EVIDENCE SUCH AS COPY OF CONTRACT , AGREEMENT OR BILLS RAISED HAS BEEN FILED IN SUPPORT OF ITS CLAIM. IN ABSENCE OF SUCH VITAL EVIDENCES, THE SUBMISSIONS OF THE APPELLANT ARE SELF SERVING STATEMENTS NOT SUPPORTED BY ANY COGENT EVIDENCE . THEREFORE , THE ACTION OF THE AO IS UPHELD AND APPEAL ON THIS GROUND IS REJECTED. 6.1 IN THE SECOND GROUND, THE APPELLANT HAS CHALLENGED THE ACTION OF THE AO FOR APPLYING PROVISIONS OF SECTION 194 - I IN RESPECT OF PAYMENTS MADE TO M/S BAL AJI HEAVY LIFTERS PVT LTD ON WORK CONTRACT FOR CARGO HANDING SERVICES. FROM THE DETAILS, IT IS NOTICED THAT T HE AOS CONTENTION IS NOT CORRECT AS IS EVIDENT FROM THE TERMS DECIDED IN THE CONTRACT AGREEMENT EXECUTED WITH THE SAID PARTY ITA NO.12/RJT/2013. 1 1 / ASSESSMENT YEAR 2007 - 08 3 WHICH IS FILED B Y THE APPELLANT IN PAPER BOOK IN PA G E NOS.16 TO 18 WHEREIN THE FOLLOWING TERMS ARE MENTIONED : 1. PARTY OF SECOND PART WILL PROVIDE SERVICE AS AND WHEN REQUIRED BY THE PARTY OF THE PART AND REMAINS IN TOUGH FOR THE EXECUTION OF THE CARGO HANDLING WO RK UNDER THIS CONTRACT ; 2. THE PARTY OF THE SECOND PART WILL ARRANGE, CRANE , TRAILERS , MAIN - POWER FOR LOADING, UNLOADING , SHIFTING TRANSPORTATION, STUFFING, ETC OF THE CONTAINER OR CARGO ON HIS OWN TO PERFORM ALL THE REQUIRED ACTIVI TI ES RELATING TO CARGO HANDLING. THE PARTY OF THE 1 ST PART IS NOT AT ALL CONCERN WITH USE OF EQUIPMENT , TRAILERS, MAN - POWER, ETC THEY ARE ONLY CONCERNED WITH THE CARGO HANDLING BY WHATEVER MEANS DEEMED SUITABLE BY THE PARTY OF THE 2 ND PART. 3. PARTY OF THE SECOND PART WILL BE RESPONSIBLE FOR LOSS/DAMAGES OF THE CONTAINER OR CARGO DURING THE TRANSIT AS WELL AS VARIOUS DESTINATIONS INVOLVED IN CARGO HANDLING STAGES. 4. BOTH THE PARTIES WERE AGREED FOR THE FOLLOWING CONSOLIDATED RA T E FOR VARIOUS CARGO HANDLING WORK : NATU RE OF WORK RATE PER MT RS. A) HANDLING OF STEEL PIPES FROM VESSEL HOOK POINT TO PORT ALLOTTED YARD AT KANDLA. 75.00 B) HANDLING OF STEEL PIPE AND PLATE AT VESSEL HOOK POINT 40.00 C) STEEL COILS HANDLING: SHIFTING, HOOKING, AND INTERNAL TRANSPORTATION AT KANDLA PORT RELOADING CHARGES 50.00 15.00 D) TIMBER LOGS SHIFTING FOR EXPORT PIPES VESSEL AT ADANI MUNDRA PORT 60.00 E) TRANSPORTATION OF CONCRETE PIPE FROM NANA KAPAYA TO ADAN I PORT 105.00 F) TRANSPORTATION HEAVY PACKAGES CONTAINER FROM VESSEL TO PORT YARD AT MUNDRA PORT 225.00 G) UNLOADING OF STEEL PIPES FROM TRAILER AT STACKING YARD RELOADING AND TRANSPORTATION FROM STACKING YARD TO VESSEL HOOK P OINT 80.00 5. SINCE PARTY OF THE 1 ST PART IS NOT CONCERNED AT ALL WITH THE MODE OF CARGO HANDLING, THEY ARE NOT LIABLE FOR ANY EXPENSES INCURRED BY THE PARTY OF THE 2 ND PART OVER AND ABOVE THE CONSOLIDATED FIXED RATE RELATED TO VARIOUS CARGO HANDLING A CTIVITIES. 6. PARTY OF THE 1 ST PART IS NOT CONCERNED WITH THE EQUIPMENT, TRAILERS ETC OWNED OR HIRED BY THE PARTY OF THE 2 ND PART IN EXECUTION OF THIS CONTRACT. NO DEDUCTION 7. PARTY OF THE SECOND PART WILL RAISE THEIR BILLS EVERY 15 DAYS AND PARTY OF THE 1 ST PART UNDERTAKES TO PAY WITHIN A MONTH FROM RECEIPTS OF THE BILL ITA NO.12/RJT/2013. 1 1 / ASSESSMENT YEAR 2007 - 08 4 FROM THE ABOVE TERMS AND CONDITIONS, IT IS EVIDENT THAT THE WORK INVOLVED IS MAINLY LABOUR ORIENTED WORK WITH THE HEL P OF VARIOUS MACHINERIES AND EQUIPMENT . THIS WORK INVOLVES PROV IDING OF MAN POWER FOR LOADING AND UNLOADING, SHIFTING AND TRANSPORTATION OF THE CARGO TO THE DESTINATION AS WELL. IT IS ALSO EVIDENT FROM THESE TERMS AND CONDITIONS THAT THE POSSESSION AND CONTROL OVER EQUIPMENT AND MAN POWER DO NOT VEST WITH THE APP ELLANT COMPANY WHICH IS A DETERMINANT FACTOR SO AS TO DECIDE THE APPLICABILITY OF THE PROVISIONS OF SECTION 194 - I. THE RATES FOR EACH KIND OF CARGO HAVE ALSO BEEN SPECIFIED ON THE BASIS OF THE VOLUME OF T HE CARGO BEING HANDLED AND NOT ON THE BASIS OF TIME PERIOD INVOLVED IN EXECUTION OF THE SAID CONTRACT. IN THE DECISION RENDERED BY THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF M/S SWAYAM SHIPPING SERVICES PVT. LTD AS RELIED UPON BY THE APPELLANT, THE AUTHORITIES HAVE DISCUSSED THIS ISSU E WHICH MAINLY HINGES ROUND TRANSPORTATION OF GOODS FROM ONE PLACE TO ANOTHER PLACE WHEREIN CONTROL OVER TRAILERS /CRANES WERE NOT WITH THE CONCERNED COMPANY. RESPECTFULLY FOLLOWING THE SAID DECISION OF THE HONBLE JURISDICTIONAL HIGH COURT, THE ACTION OF THE AO IS HELD TO BE UNJUSTIFIED. THUS, THE APPEAL ON THIS GROUND IS ALLOWED . 6.2 IN THE THIRD GROUND OF APPEAL, THE APPELLANT HAD CHALLENGED THE ACTION OF THE AO INVOLVING TRANSACTION WITH M/S SAMARTH LIFTNERS PVT LTD FOR CARGO HANDLING SERVICES, AS THE FACTS ARE IDENTICAL AS DISCUSSED IN THE CASE OF M/S BALAJI HEAVY LIFTERS PVT.LTD. IN PARA 6.1 ABOVE AND EVEN THE TERMS AND CONDITIONS INVOLVED ARE IDENTICAL EXCEPT FOR THE RATES FOR HANDLING VARIOUS KIND OF CARGO, THE APPEAL OF THE APPELLANT I S ALLOWED FOR THE REASONS MENTIONED ABOVE ON THIS GROUND AS WELL. AGGRIEVE D WITH THE ORDER OF THE LD. CIT(A), THE REVENUE IS IN APPEAL BEFORE THIS TRIBUNAL WITH THE FOLLOWING GROUNDS : 1. THE LD. CIT(A) HAS ERRED ON FACTS AND IN LAW IN DELETING HE A DDITION MADE U/S 201(1) OF THE IT ACT OF RS.18,80,471/ - AND INTEREST CHARGED UNDER SECTION 201(1A) OF THE IT ACT OF RS.9,87,247/ - IN THE CASE OF BALAJI HEAVY LIFTER (P) LTD AND SAMARTH LIFTERS (P) LTD BY TREATING THE PAYMENT OF RENT U/S 194C INSTEA D OF U/S 194 - I BY THE AO; 2. THE LD. CIT(A) HAS ERRED ON FACTS AND IN LAW IN TREATING THE CARGO HANDLING CHARGES AS WORK U/S 194C IN THE CASE OF (I) M/S BALAJI HEAVY LIFTER (P) LTD AND (II) M/S SAMARTH LIFTERS (P) LTD WHEREAS HE HIMSELF HAS TREATED THE CARGO HANDLING CHARGES AS REND U/S 194 - I IN THE CASE OF SAURASHTRA CONTAINERS PVT.LTD. 3. THE LD. CIT(A) HAS ERRED ON FACTS AND IN LAW THAT AFTER AMENDMENT IN SECTION 194 - I VIDE TAXATION LAWS (AMENDMENT) ACT, 206, W.E.F. 13/07/2006 TDS ON PAYM ENTS MADE ON HIRING OF MACHINERY ARE COVERED U/S 194 - I OF HE ACT 4. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) OUGHT TO HAVE UPHELD THE ORDER OF THE AO. ITA NO.12/RJT/2013. 1 1 / ASSESSMENT YEAR 2007 - 08 5 4. AT THE TIME OF HEARING BEFORE US ON BEHALF OF THE REVENUE SHRI AVI NASH KUMAR APPEARED AND CONTENDED THAT IN THE IMPUGNED ORDER THE LD. CIT(A) HAS CONTRADICTED HIS OWN DECISION THAT MEANS HE CONFIRMED THE FINDINGS OF THE AO IN THE CASE OF M/S SAURASHTRA CONTAINER FREIGHT STATION P.LTD. BY TREATING THE PAYMENT FOR CARG O HANDLING CHARGES AS RENT U/S 194 - I WHEREAS THE SAME KIND OF HANDLING CHARGES PAYMENTS IN THE CASES OF OTHER PARTIES I.E. M/S BALAJI HEAVY LIFTERS (P ) LTD AND M/S SAMARTH LIFTERS (P) LTD HAS BEEN HELD BY HIM AS THE WORK CONTRACT U/S 194C BY HOLDING AS UNDER : THE POSSESSION AND CONTROL OVER EQUIPMENTS AND MAN POWER DID NOT VEST WITH THE ASSESSEE COMPANY WHICH IS A DETERMINANT FACTOR SO AS TO DECIDE THE APPLICABILITY OF THE PROVI SIONS OF SECTION 194I AND THE RATES FOR EACH KIND OF CARGO HAVE ALSO BEEN SPECIFIED ON THE BASIS OF THE VOLUME OF THE CARGO BEING HANDLED AND NOT ON THE BASIS OF TIME PERIOD INVOLVED IN EXECUTION OF CONTRACT THE LD. DR POINTED OUT THAT THE ASSESSEE HAS PAID SIMILAR PAYMENTS TO ALL THE THREE PARTIES, THEREFORE, THE LD.CIT (A) OUGHT TO HAVE TREATED THE PAYMENT TO M/S BALAJI HEAVY LIFTERS (P ) LTD AND M/S SAMARTH LIFTERS (P) ALSO AS RENT U/S 194 - I AND STATED THAT AS PER THIS SECTION RENT MEANS : 'RENT' MEANS ANY PAYMENT, BY WHATEVER NAME CALLED, UNDER ANY LEASE, SUB - L EASE, TENANCY OR ANY OTHER AGREEMENT OR ARRANGEMENT FOR THE USE OF (EITHER SEPARATELY OR TOGETHER) ANY, ( A ) LAND; OR ( B ) BUILDING (INCLUDING FACTORY BUILDING); OR ( C ) LAND APPURTENANT TO A BUILDING (INCLUDING FACTORY BUILDING); OR ( D ) MACHINERY; OR ( E ) PLANT; OR ( F ) EQUIPMENT; OR ( G ) FURNITURE; OR ( H ) FITTINGS, WHETHER OR NOT ANY OR ALL OF THE ABOVE ARE OWNED BY THE PAYEE; 5 . HE SUBMITTED THAT ACCORDING TO THE AFORESAID DEFINITION OF RENT, THE CARGO HANDLING CHARGES ARE VERY MUCH COVERED W ITHIN THE MEANING OF R ENT AND HENCE AFORESAID SHOULD HAVE BEEN TREATED SO BY THE LD. CIT(A) . THE LD. DR FURTHER CONTENDED THAT IN THE IMPUGNED ORDER THE LD. CIT(A) HAS TREATED THE SAME KIND OF PAYMENT ON ACCOUNT OF CARGO HANDLING CHARGES AS RENT U/S 194 - I IN CASE OF M/S SAURASHTRA CONTAINERS PVT.LTD, THEREFORE, HE IS NOT JUSTIFIED IN NOT TREATING THE SIMILAR NATURE OF PAYMENT ITA NO.12/RJT/2013. 1 1 / ASSESSMENT YEAR 2007 - 08 6 AS RENT IN THE CASE OF OTHER TWO FIRMS I.E. M/S BALAJI HEAVY LIFTERS (P ) LTD AND M/S SAMARTH LIFTERS (P) . F INALLY TH E LD. DR POINTED OUT THAT IN ORDER TO AVOID THE LIABILITY OF DEDUCTION OF TAX, THE ASSESSEE FRAMED A COLORFUL DEVICE OF ENTERING INTO SUCH TYPE OF AGREEMENTS WHICH WAS IN FACT OF THE NATURE OF RENT AND LIABLE FOR DEDUCTION OF TAX U/S 194 - I OF THE ACT INSTEAD OF U/S 194C OF THE ACT. 6 . ON THE OTHER HAND, SHRI D R ADHIA, THE LD. AR APPEARED ON BEHALF OF THE ASSESSEE VEHEMENTLY SUPPORTED THE ORDER OF THE LD. CIT(A). THE LD. AR POINTED OUT THAT IN RESPECT OF M/S SAURASHTRA CONTAINERS PVT.LTD, THE ASS ESSEE COULD NOT FURNISH THE RELEVANT DOCUMENTS, THEREFORE, THE LD. CIT(A) HAS HELD THAT THE PAYMENT MADE TO THIS PARTY IS RENT AND LIABLE TO DEDUCTION U/S 194 - I. HOWEVER, IN RESPECT OF OTHER TWO PARTIES VIZ. . M/S BALAJI HEAVY LIFTERS (P ) LTD AND M/S SA MARTH LIFTERS (P) THE ASSESSEE HAS FURNISHED ALL THE RELEVANT DOCUMENTS AND THE LD. CIT(A) AFTER EXAMINING THE RELEVANT CLAUSES OF THE AGREEMENT CAME TO THE CONCLUSION THAT PAYMENT MADE TO THESE PARTIES IS FOR WORK CONTRACT FOR WHICH DEDUCTION WAS LI ABLE TO BE U/S 194C AND NOT U/S 194 - I. 7 . RIVAL SUBMISSIONS WERE CONSIDERED. IT IS PERTINENT TO NOTE THAT THE AO WORKED OUT SHORT DEDUCTION OF RS.70,225/ - IN RESPECT OF CARGO HANDLING CHARGES PAID TO M/S SAURASHTRA CONTAINER FREIGHT STATION PVT LTD . IN RESPECT OF THIS, IN THE IMPUGNED ORDER OBSERVED THAT THE ASSESSEE HAS NOT FURNISHED THE SUPPORTING EVIDENCE SUCH AS COPY OF CONTRACT, AGREEMENT OR BILLS RAISED IN SUPPORT OF ITS CLAIM. AS AGAINST THIS, IN RESPECT OF REMAINING TWO FIRMS VIZ. M/S BA LAJI HEAVY LIFTERS (P ) LTD AND M/S SAMARTH LIFTERS WE FIND THAT THE WORK INVOLVED IS MAINLY LABOUR ORIENTED WORK WITH THE HELP OF VARIOUS MACHINERIES AND EQUIPMENT. THIS WORK INVOLVES PROVIDING OF MAN POWER FOR LOADING AND UNLOADING, SHIFTING AND TRAN SPORTATION OF THE CARGO TO THE DESTINATION AS WELL. IN RESPECT OF BOTH THESE PARTIES THE ASSESSEE HAS FURNISHED THE RELEVANT CONTRACT. FROM THE PERUSAL OF RELEVANT TERMS AND CONDITIONS IT IS EVIDENT THAT POSSESSION AND CONTROL OVER THE EQUIPMENT AND MANPOWER DO NOT VEST WITH THE ITA NO.12/RJT/2013. 1 1 / ASSESSMENT YEAR 2007 - 08 7 ASSESSEE COMPANY WHICH IS A DETERMINANT FACTOR SO AS TO DECIDE THE APPLICABILITY OF THE PROVISIONS OF SECTION 194 - I OF THE ACT . THE RATES FOR EACH KIND OF CARGO HAVE ALSO BEEN SPECIFIED ON THE BASIS OF THE VOLUME OF THE CARGO BEING HANDLED AND NOT ON THE BASIS OF TIME PERIOD INVOLVED IN EXECUTION OF THE SAID CONTRACT. FACTS OF THIS CASE ARE IDENTICAL TO THAT OF THE CASE BEFORE THE HONBLE GUJARAT HIGH COURT IN THE CASE OF M/S SWAYAM SHIPPING SERVICES PVT. LTD IN T AX APPEAL NO.1037 OF 2009. BEFORE US, THE LD. DR COULD NOT BROUGHT ANY MATERIAL TO SUPPORT THE CONTENTION THAT THE AGREEMENT WITH TWO PARTIES VIZ M/S BALAJI HEAVY LIFTERS (P ) LTD AND M/S SAMARTH LIFTERS IS A COLOURABLE DEVICE IN ORDER TO DEDUCT TAX AT A LOWER RATE U/S 194C OF THE ACT. WE THEREFORE, ARE OF THE VIEW THAT THE LD. CIT(A) HAS GIVEN COGENT REASON FOR HOLDING THAT THE ASSESSEE HAS CORRECTLY DEDUCTED THE TDS U/S 194C IN RESPECT OF PAYMENT MADE TO M/S BALAJI HEAVY LIFTERS (P ) LTD AND M/S SAMARTH LIFTERS IS A COLOURABLE . WE THEREFORE INCLINED TO UPHOLD THE ORDER OF THE LD. CIT(A). 8 . IN THE RESULT, THE APPEAL OF THE REVENUE STANDS DISMISSED. THIS ORDER IS PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED HEREINABOVE. SD SD ( .. / D. K. SRIVASTAVA) ( '.. 1 / T. K. SHARMA) ,, / ACCOUNTANT MEMBER / JUDICIAL MEMBER / ORDER DATE 12. 4. . 201 3 . /RAJKOT SRL RJ / COPY OF ORDER FORWARDED TO: - . 0 / APPELLANT - 2. T0 / RESPONDENT - 3. R / CONCERNED CIT , 4. - / CIT (A) , 5. R, ' R, / DR, ITAT, RAJKOT 6. 1 / GUARD FILE. / BY ORDER , TRUE COPY SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL, RAJKOT.