Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (4) TMI 533 - AT - Income TaxLiability to deduct TDS u/s 194C - addition u/s 40(a)(ia) - CIT(A) deleted the addition - Held that:- Circular No.715 dt 8-8-1995 issued by the CBDT states that the at source has to be deducted from the payments made to clearing and forwarding agents for carriage of goods if the payments are made under contract. The said circular also clarifies that each GR can be said to be a separate contract, if the goods are transported at one time. If the goods are transported continuously pursuance of a contract for a specific period or quantity, each GR will not be a separate contract and all GRs relating to that period or quantity will be aggregated for the purposes of TDS. In the instant case, there is no continuous contract, oral or written between the Appellant and Rupal Roadways as regards quantity period and rate. Hence each GR is a separate contract. As per assessee the payment for each trip is less than Rs.20,000/- and the aggregate payment in a year to a single truck owner/driver is less than Rs.50,000/-. Hence the provisions of section 194C(3) are not applicable in this case & consequently section 40(a)(ia) will also not come into play. The presumption of the AO that there is an open and continuous contract between he Appellant and Rupal Roadways is contrary to the facts. No infirmity in the order passed by CIT(A) holding that provision of Section 194C(3) are not applicable in this case and consequently no addition u/s 40(a)(ia) can be made. In favour of assessee.
|