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2019 (6) TMI 233 - AT - Income TaxTDS u/s 194C - non deduction of tds - disallowance u/s 40(a)(ia) - commission agent or lorry booking agent - only arranges the vehicles for the people who transport the goods - Expenditure relating to transportation of goods such as loading, unloading charge etc - HELD THAT:- The matching of the freight received and freight paid but for the difference of 1.15% which accounts for the commission of the assessee, indicates that the assessee is nothing but an intermediary between the clients and the vehicle owners/operators and mainly facilitates the contract for carrying goods. Having regard to the volumes of the freight received and paid in contrast to the earnings of the assessee, analyzed in the background of the observations of CIT(A) that the assessee had incurred only office expenditure and no expenditure relating to transportation of goods such as loading, unloading charge etc has been debited, we are of the considered opinion that the assessee actually engaged himself not in the transportation business,but only facilitating or arranging transportation for various parties and he is a mere lorry booking agent. The assessee cannot be held as the “person responsible” for deduction of tax at source and to the facts of the case the provisions u/s 194C have no application. No coming to the contention of the assessee that the ad hoc addition on estimate basis is non-sustainable, insofar as the provisions under Chapter XVII-b in general and to section 194C in particular, disallowance on estimate basis cannot be sustained. Viewing from any angle, we find it difficult to sustain the disallowance made by the learned Assessing Officer and, therefore, direct the same to be deleted. - Appeal of the assessee is allowed.
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