Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2012 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (11) TMI 796 - AT - Income TaxDisallowance u/s 40a(ia) – alleged that the appellant should have made deduction of TDS @ 2% as against 1% deducted by the appellant from freight payments – Held that:- Payment made by it to the truck operators was in the nature of sub contract and hence was rightly subjected to TDS @ 1% - assessee was required to deduct TDS at the rate of 1% only as in assessee’s case the provisions of section 194C(2) are attracted - there is no violation of section 40a(ia) on the part of the assessee. This ground of the assessee is allowed. Disallowance on account of amount paid towards Crossing Bhada [Secondary Freight] u/s 40a(ia) – alleged that no TDS has been deducted by the delivery agent to the trucks owners while making payment to them – Held that:- Full details/facts in respect of these two grounds are not on record - restore these issues to the file of the AO Disallowances u/s 40a(ia) on account of non-deduction of TDS on primary freight payment – Held that:- Payments related prior to 1s t October, 2004, are covered by the first proviso to section 194C(3) as it stood prior to substitution by the Finance (No.2) Act,2004 and were not therefore liable to deduction of tax at source - there is no violation of section 40a(ia) of the Act and therefore this ground of the assessee is also allowed
|