Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (1) TMI 1216 - AT - Income TaxTDS u/s 194C - Disallowance made u/s 40(a)(ia) - payments to the site in charge / supervisors - Held that:- Assertion of the assessee that the assessee remitted payments to the site in charge / supervisors who in turn made payments to the labourers or contractors and payments to individual labourers were below the limit prescribed for tax deduction u/s 194C of the act remains unrebutted. We find that the authorities had wrongly considered the remittances made to the site in charge as the payment to the labour contractors whereas the records of the assessee indicate that the payments were made to the labourers through the medium of site in charge. Hence we are not inclined to accept the arguments of the ld DR. We also find that the ld CITA had made bald statement that the signatures in the sheets were not matching. It is not known from which document he was able to reach such conclusion for comparison of the signatures. Accordingly we hold that there is no violation of provisions of section 194C of the Act warranting disallowance u/s 40(a)(ia) of the Act. The ld AO is directed to delete this disallowance u/s 40(a)(ia) of the Act - Decided in favour of assessee Disallowance made u/s 40A(3) - Held that:- It is not in dispute that the supply of materials had happened through out the year at different sites but at each site, the job allotted to the assessee was supposed to be executed within a short duration of 3 to 4 weeks. These facts have not been controverted by the revenue before us. Accordingly the payments were made to the parties in cash by the assessee through his employees who were site in charge / supervisors at various sites and it is not in dispute that the bulk payments were transferred to the employees by the assessee and those employees inturn make payment for purchase of materials as and when needed by making cash payments. It is not in dispute that the individual purchase bill for which payment was made was much below ₹ 20,000/- for which expenditure was incurred. All the purchase bills were also produced by the ld AR in his paper book filed. It is not in dispute that the employees of the assessee who were site in charge / supervisors situated at different site locations had approached these suppliers who do not know each other and hence the suppliers insisting on cash payments thereon has to be accepted and cannot be doubted / faulted with. Considering the totality of the facts and circumstances and going by the intention of introduction of section 40A(3) of the Act together with its amendments we hold that no disallowance u/s 40A(3) of the Act is warranted in the facts and circumstances of the case. - Decided in favour of assessee
|