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High CourtsDivision Bench(2011) 12 SHI CK 0259

Commissioner of Income Tax, Shimla vs M/s Bilaspur District Truck Operators Transport Co-op. Society Ltd., VPO Barmana

High Court Of Himachal Pradesh · Decided on 15 December 2011

HON’BLE JUDGES
Sanjay Karol, J · R.B. Misra, J
RESULT
Disposed Off
CASE NUMBER
ITA No. 26 of 2006

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Judgment

6 paragraphs · 363 words

Justice R.B. Misra, J.—Heard Mr. Vinay Kuthiala, learned counsel for the appellant and Mr. M. M. Khanna, learned Senior Counsel assisted by Mr. Goverdhan Sharma, Advocate, for the respondent.

2.

In the present appeal following substantial question of law came up for consideration:-

Whether on the facts and in the circumstances of the case, freight payments made by the assessee Society to the truck owners who were also the members of the Society, were subject to deduction at source in view of Section 194C(2) of the Income Tax Act, 1961, being payments made to the truck owners in their capacity as Sub Contractors.

3.

It appears that being aggrieved by the dismissal of the appeal the Revenue preferred Civil Appeal No. 1710 of 2009, arising out of SLP (C) 11931/2007 before the Hon''ble Supreme Court. The Hon''ble Supreme Court vide its order dated 16.3.2009 passed in Civil Appeal No. 1710 of 2009 set aside the verdict of the High Court summarily dismissing the appeal of Revenue with observations that the High Court is to consider the appeal in accordance with law. After remand, the above substantial question of law came up for consideration. However, in similar facts and circumstances, between the same parties, an appeal came up for consideration on the same point and this Court (Division Bench) while deciding I.T.A. No. 27 of 2006 (Commissioner of Income Tax Vs. M/s Bilaspur District Truck Operators Transport Co-Op. Society Ltd.) on 16.11.2009 and adjudicating the following substantial question of law "Whether u/s 194C(2) of the Income Tax Act the assessee is liable to deduct TDS" has observed vide a detailed judgment that Section 194C(2) of the Income Tax Act, 1961 is not attracted and the assessee Society is not liable to deduct tax at source on account of payments made to the truck owners who are also members of the Society.

4.

In light of the reasoning and observations made in the judgment dated 16.11.2009 passed in ITA No. 27 of 2006, as above, the present appeal is also dismissed. The substantial question of law is accordingly decided in favour of the assessee.

Appeal stands disposed of, so also the pending application(s), if any.