TMI Blog2013 (12) TMI 296X X X X Extracts X X X X X X X X Extracts X X X X ..... eduction would not be in the hands of partners – The claim can be verified from the information submitted by the deductors – When income is accepted in the hands of firm then the claim of advance ta should also be given to the firm and not to the partners – Decided in favour of assessee. - ITA No.591/CTK/2012 - - - Dated:- 11-1-2013 - K K Gupta and K S S Prasad Rao, JJ. For the Appellant : Shri D K Sheth, AR For the Respondent : Shri N K Neb, DR ORDER:- Per: K K Gupta: The assessee has filed the present appeal against the order 28.09.2012 of the Commissioner of Income-tax (Appeals) for the Assessment Year 2009-10 raising the following grounds. 1. For that the disallowance of Rs.30,45,890 as made u/s.40(a)(ia) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rdars of the labourors), no tax has been deducted from them which according to the Assessing Officer is required to be made as per provisions of Section 194C. Therefore, he disallowed the payment of Rs.30,45,890 u/s.40(a)(ia) and added the same to the total income. 4. Aggrieved, the assessee appealed before the first appellate authority on these additions which inter alia raised the issue that a demand has been raised on the assessee when the TDS ought to have been taken care of by the Assessing Officer himself. The learned CIT(A) was of the view that the credit shall be allowed on the basis of the amount of the tax deducted and specified in the statement in Form 26-AS. It shall only be allowed to the assessee whose name and PAN have been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs at the various sites where the contracts were executed when the amount paid were more than amounting to Rs.50,000 each but were against the muster rolls payments made to the individual labourors which labourors have not claimed more than Rs.50,000 was not by way of a contract between the assessee and the labourors, the final recipients. Therefore, as submitted, the functioning of the contracts was at remote areas when the payments are made to local inhabitants of that area are through the head of those labourors when no contract had been entered but as a convenience by the assessee to pay them who would identify the final payees which is the expenditure as was reimbursed by the Government Departments on the submission of those bills. It ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e as per the PAN of the assessee and not that of the partners was the mistake of the deductor. The tax deduction at source certificates were available by the firm only as per the Forms submitted at the time of filing of the return have not been disputed by the assessing authorities. On one hand they are relying on the information available on Form AS-26 which has been uploaded by the deductors and on the other sides they are considering the gross receipts and assessing the gross receipts on the basis of Form 26-AS which clearly indicates that the amount of Tax deducted at source is lying to the credit of the assessee and not in the individual partners as of now insofar as it was never the case of the assessee to claim refund on filing retur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of agitation before them which facts as have been perused by us brought on record are not disputed by the rival parties as of now. The gross receipts was accepted by the Assessing Officer in the hands of the assessee when the assessee returned an income of Rs.39,35,490. Out of the labour payments of Rs.4.61 Crores when the main business of the assessee as a labour contactor was to verify the payments to 19 Sardars was payments for labourors procured by them which individual labourors were paid amount less than Rs.50,000 cannot be held as a sub sub-contractor. In other words, the learned Counsel of the assessee submitted that the facts and circumstances led to payment in cash to those Sardars more than Rs.50,000 when the individual payment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated therein but also to cross verify the claim of deduction of tax deducted at source in the lines of the advance tax to be verified from the bank challans submitted by the deductors. Therefore, we feel it necessary to direct the Assessing Officer to verify tax deduction at source claimed by the assessee vis- -vis the Gross receipts for the purpose of claiming credit for TDS when the Assessing Officer has accepted the income was to be given credit for tax against it the assessee being the Firm returning the income for claiming the tax deducted at source. The Assessing Officer is directed to give credit to the assessee in accordance with the provisions of Income-tax Act. 10. In the result, the appeal of the assessee is allowed. - - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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