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2011 (2) TMI 78 - AT - Income TaxDisallowing of a sum of Rs. 42,82,497/- by invoking the provisions of section 40(a)(ia) of the Act,1961.- Assessing Officer held that provisions of section 194C provides that TDS has to be deducted from any sum paid for carrying out "any work" in pursuance to a contract between the contractor and sub-contractor - Assessee has not complied with the provisions of section 194C of the IT. Act and thus provisions of section 40(a)(ia) of the IT. Act are applicable - Section 40(a)(ia) has undergone an amendment by the Finance Act,2006 w.e.f. 1-4-2006 by virtue of which though the default in deduction of ITDS under section.194-I was not hit by the provisions of section 40(a)(ia) for the assessment year 2005-06 but similar default was hit by the provisions of section 40(a)(ia) for the assessment year 2007-08 - vehicle hire charges of Rs. 42,84,497/- was paid by the assessee to various vehicle owners for carriage of passengers by buses or mini buses and therefore the payments made by the assessee to the vehicle owners in consideration of above services which is deemed as work within the meaning of section 194C of the Act and therefore, the assessee was liable to deduct ITDS therefrom under the provisions of section 194C of the Act - The assessee could not point out that the aforesaid payment of Rs. 42,84,497/- included any amount which was lesser than the limit provided in section 194C of the Act on which tax was not deductible as per the provisions of that section - Appeal of the assessee are dismissed Addition of Rs. 49,000/- under section 69 - Assessing Officer added Rs. 49,000/- to the income of the assessee by invoking provisions of section 68 of the Act on the ground that the assessee could not satisfactorily explained the source of Rs. 49,000/- credited in its books of account - The name and address of the creditors who paid the advance amount of Rs. 49,000/- and the date and mode of payment of the said amount the assessee could not produce any material - In absence of any such material or evidence we do not find any good reason to interfere with the order - Appeal of the assessee is dismissed
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