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2017 (11) TMI 1676 - HC - Income TaxTDS u/s 194C - addition u/s 40(a) (ia) - tds liability - Held that:- Tribunal was wrong in holding that the appellant was liable to deduct tax at source in respect of the freight component. When the assessee was not liable to make any deduction under Section 194C, the rigours of Section 40(a)(ia) could not have been applied to him. The question is thus answered. The appeal is thus allowed. It will not be out of place to mention that as rightly contended by counsel for the respondent Mr. Jhanwar that Section 194(c) read with 204(iii) will come into operation only on the payment made by assessee and as rightly discussed since payment is not made by the assessee if at all there is default the default is of Mangalam. Since the payment was not received, the same is required to be considered in the books of account since TDS is deducted by the Mangalam on behalf of assessee completely. Therefore, if there is default in payment made, he is entitled to match the balance-sheet and he cannot claim for credit @ ₹ 20 per tonne as handling charges for arranging the truck for transportation. - decided in favour of assessee
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