Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (10) TMI 802 - AT - Income TaxNon deduction of TDS on transportation expenses - disallowance u/s 40(1)(ia) - Held that:- The payment was made by the assessee to Mr. Suresh on various occasions and in turn he has made payment to the truck owners/drivers and the assessee has not furnished any details of the truck owners/drivers to the lower authorities. Moreover, it has always taken a plea that the payment has been made to the employees of the assessee who have undertaken the responsibility of transporting cylinders and the truck owners gave the bills to Mr. Suresh and in turn he paid to the truck owners. It means that Mr. Suresh acted as a sub-contractor to the assessee and as soon as Mr. Suresh enters into sub-contract with the assessee, the assessee’s case comes under the purview of sec. 194C(1) of the Act. Thereafter, it is not required to see whether the assessee paid charges to the transporter or not. The activity carried on by Mr. Suresh on behalf of the assessee will be simply an activity of transportation of cylinders by truck and the assessee is liable to deduct TDS. With regard to payment made to Mr. Suresh, the Ld. AR tried to impress the Bench by stating that the payment has been made to various truck owners which less than ₹ 1,20,000/- to each transporters. The material brought on record suggest that the assessee made payment of ₹ 1,29,84,892/- to Mr. Suresh on 23 occasions. Being so, as per record, the argument of the assessee’s counsel is devoid of merits and contrary to the facts - Decided against assessee.
|