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2021 (12) TMI 232 - HC - Income TaxTDS u/s 194C - addition u/s 40(a)(ia) - Non deduction of TDS on payments made to various transporters, this included the freight inward charges and clearing and forwarding charges - HELD THAT:- As relying on VALIBHAI KHANBHAI MANKAD [2015 (1) TMI 203 - SC ORDER] assessee company has not deducted the TDS of payment made to the transporters as per sub-section(6) of section 194(c). However, the details of the transporters have been filled-in in the TDS return, wherein their PAN cards also have been duly submitted to the Income-tax authorities, as this is a sufficient compliance of sub-section (7) of section 194(c). The Tribunal was absolutely correct in upholding the version of the assessee. It also rightly held that after obtaining the PAN Card from the transporters, assessee is needed to furnish the same in the prescribed form to the prescribed authority within prescribed time. Tribunal held that there is no prescribed authority nominated under the provisions of law. Thus, in absence of such prescribed authority, no fault was attributed to the assessee obviously for not filing the details before such authority. The details filed by the respondent assessee along with Form No.26 naturally could be construed as sufficient compliance. No fault can be found with these detailed findings and the settled position of law. - Decided in favour of assessee. Disallowance of commission expenses - Assessing Officer has treated as non-genuine commission claimed by the assessee given to M/s. C.M. Smith and Sons Ltd.- HELD THAT:- We notice that the Assessing Officer chose not to exercise its powers under section 131/133(6) of conducting the investigation or enquiries. Tribunal has rightly observed that on surmises and conjectures, AO has chosen to make disallowance. This Court in the case of Voltamp Transformers Pvt. Ltd. vs. CIT [1980 (10) TMI 35 - GUJARAT HIGH COURT] has left it to the concerned assessee to decide its commercial expediency and business needs. Ordinarily, a business person would alone decide as to in what manner it would seek to hire the service of the commission agent. Merely because, the doubt was created by the Assessing Officer only on the premises that two of the companies were already being served by the respondent assessee and the sales were made in the past, it chose to disallow the commission, is not a sustainable premise. If there was any question with regard to genuineness of the transaction further inquiry or investigation is permissible under the law and in absence thereof, doubting agreement or financial statement of the agent was impermissible, much less, disallowing the commission without appreciating business expediency.
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