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2014 (7) TMI 456 - ITAT AHMEDABADFreight charges u/s 40(a)(ia) of the Act – Failure to deduct TDS u/s 194C of the Act - Held that:- The decision in Commissioner of Income-tax-I Versus Valibhai Khanbhai Mankad [2012 (12) TMI 413 - GUJARAT HIGH COURT] followed - The requirements of section 194C(3), principally, are that the sub-contractor, recipient of the payment produces a necessary declaration in the prescribed format and further that such sub-contractor does not own more than two goods carriages during the entire previous year. - once the conditions of further proviso of section 194C(3) are satisfied, the liability of the payee to deduct tax at source would cease - The requirement of payee to furnish details to the income tax authority in the prescribed form within prescribed time would arise later and any infraction in such a requirement would not make the requirement of deduction at source applicable under subsection (2) of section 194C of the Act - It may be that failure to comply requirement by the payee may result into some other adverse consequences if so provided under the Act - fulfilment of requirement cannot be linked to the declaration of tax at source - any such failure therefore cannot be visualized by adverse consequences provided under section 40(a)(ia) of the Act - the assessee had collected Form15-I from different truck owners and the list was furnished for an amount totaling ₹ 3,58,61,008/- which was duly acknowledged by the AO – thus, the order of the CIT(A) is upheld – Decided against Revenue. Undisclosed receipt – treatment of income on the basis of TDS certificates - Held that:- CIT(A) rightly held that the entire receipt cannot be treated his income as per settled legal preposition - It is only the income component out of it which can be legally said to be appellant’s undeclared and undisclosed income - TDS deducted out of such receipt as appearing in ITS details has to be given credit since the same was not claimed and corresponding income is if included in total income - The same credit has to be given – thus, there is no reason to interfere in the order of the CIT(A) – Decided against Revenue.
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