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2014 (12) TMI 101 - AT - Income TaxAddition u/s 40(a)(ia) – TDS not deduction on payment u/s 194C - Held that:- The assesse has made the payments to the various transporters towards transportation charges for the purpose of his business of transportation of goods - These transporters are kind of subcontractors who are engaged by the assessee on random basis for transportation of the goods - the assessee has not deducted the TDS u/s 194C - Even though the assessee has not furnished Form 15-J, intimating to the income authorities after receiving Form 15-I from the parties, it cannot be held that for the purpose of u/s 194C, assesse was in default. Also in CIT Vs. Vali Bhai, Khan Bhai, Mankad [2012 (12) TMI 413 - GUJARAT HIGH COURT] it has been held that once the conditions of further proviso of S. 194C(3) are satisfied, the liability of the payer to deduct tax at source would cease - The requirement of such payer to furnish details to the IT 'authority in the prescribed form within prescribed time would arise later and any infraction in such a requirement would not make the requirement of deduction at source applicable u/s 194C(2) - the assessee was not at default for deduction of tax at source - It cannot be held that, despite receiving Form 15-I from the parties, assessee should have ignored these forms and deducted tax - no disallowance u/s 40(a)(ia) can be made – Decided against revenue. Bogus purchases in contravention of section 102 of Evidence Act or not – Held that:- Neither the purchases could be confirmed nor the assessee could file any confirmation or details from such a party - This itself was a good ground for rejecting the book result as the purchase was not verifiable – the AO has rightly made the addition after applying GP rate of 5% - as the assessee has failed to discharge his primary onus of filing the confirmation, the order of the CIT(A) is upheld – Decided in favour of revenue.
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