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2020 (12) TMI 1144 - ITAT BANGALORETDS u/s 194C - transportation charges paid during the year - Addition u/s. 40(a)(ia) of the Act for non-deduction of tax at source - immunity from obligations of TDS by filing of PAN of payee transporters - HELD THAT:- Present year under consideration before us AE’s assessment year 2013-14 and therefore unamended provision of clause 6 is to be considered. On perusal of unamended clause 6, it is clear that, if the sub contractor’s have supplied their PAN to assessee in respect of hiring/leasing/of vehicles during the course of its business, then assessee shall not deduct any TDS. Thus, as per Clause 6, as it stood prior to amendment, applicable for the year under consideration, in order to get immunity from obligations of TDS, filing of PAN of payee transporter is sufficient, and no confirmation letter as required by Ld.AO is needed. The need to furnish declaration from the contractor’s being owners of less than 10 vehicles has been inserted by way of amendment which is effective from 01/06/2015. AR in the paper book, filed Explanatory notes to the Provisions of Finance Act 2015 at page 75, wherein, applicability of amendment to section 194C(6) has been said to take effect from 01/06/2015. Therefore, amended provision of clause 6 to section 194 cannot be applied retrospectively. Thus the intention of legislature was very clear to apply the amended clause 6 prospectively. The objection raised by Ld.CIT(A)/AO in this regard therefore does not hold any waters in eyes of law. Categorically assessee had provided PAN of 5/7 transporters, before Ld.AO. We therefore do not find any reason to uphold disallowance in respect of payments made to 5 transporters whose PAN were submitted by assessee. Accordingly we delete the disallowance made in respect of transporters whose PAN was submitted by assessee. Payments to M/s.Precicse Carrier and M/s.KPR Transport - As submitted assessee was not required to deduct TDS as the same was within the limit prescribed under section 194C(5) - We direct Ld.CIT(A) to verify whether any TDS is to be deducted on payments made by assessee to M/s.Precicse Carrier amounting to ₹ 34,650/- and M/s. KPR Transport, amounting to ₹ 7,230/-. In the event submissions by assessee are found to be correct, no disallowance shall be made.
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