Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (9) TMI 1225 - AT - Income TaxTDS u/s 194C on Freight - Assessee is booking only net profit out of the transaction - Since the assessee have got no own trucks, it was seen that freight has been received and credited to the Profit & Loss Account and at the same time, trucks are hired from open market and freight is being paid by the assessee at lesser rate, thereafter, showing the profits. - Addition on account of violation of Section 40(a)(ia) and not admitting the additional evidence. - the auditor has remarked, "It is not possible for us to verify whether payment has been made exceeding ₹ 20,000/- otherwise than by crossed check or DD". Held that:- The issue of paid and payable, as considered under section 40(a)(ia) of the Act have been finally decided by Hon'ble Punjab & Haryana High Court in the group cases of PMS Diesels v. CIT [2015 (5) TMI 617 - PUNJAB & HARYANA HIGH COURT] in which it was held that, "The requirement to deduct tax at source is mandatory and that the provision of Section 40(a)(ia) apply to the assessees who follow the cash system as well as assessees who follow mercantile systems". The question was decided in favour of the revenue and against assessee
|