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2022 (1) TMI 41 - AT - Income TaxRevision u/s 263 by CIT - applicability of TDS in case of payments of Lorry, charges people different lorry owners - rectification proceedings u/s 154 - HELD THAT:- We note that the Ld.AO made enquiries and accepted the documents filed during the course of scrutiny assessment. The reply dated 23/05/2016 filed by assessee pleased reveals that assessee was called upon to file the payment details and applicability of TDS provisions on such payments made. We find that assessee filed ledger accounts of the lorry owners to whom payments were made along with their PAN numbers and the amount paid. On careful perusal of the amendment carried out from time to time, we note that from 1.10.2009 up to 31.5.2015, TDS was not be deducted from the payments made to the goods transport contractor, if PAN is furnished to the person paying or crediting such sum. It is pertinent to note that the statute does not provide any restriction on the number of goods carriages to be owned by the "payee" and also there is no condition that the payee should be "individual". Before us the year under consideration is assessment year 2014-15, hence the provision as amended by Finance (No.2) Act, 2009 shall apply. Hence position explained hereinabove shall apply. The payer is required to obtain "Permanent Account Number" only from the payee for paying the charges without deduction of TDS. In the present facts of the case the assessee being an individual had furnished copies of RC card extract of the vehicles owned by such lorry owners and affidavit from all the deductee’s mentioning that the total income did not exceed the limit on which TDS is to be deducted for the year under consideration before the Ld.AO. AR had submitted that the errors pointed in the PAN extracted in the notice u/s 263, is mere typing mistake and that the assessee had submitted that the photocopy of the PAN before the Ld.AO as well as Ld.Pr.CIT. Thus by furnishing the PAN details, assessee met with the requirement of the law, in so far as the during assessment. In our view it is a possible view taken by the Ld.AO which cannot be found fault with. The proceedings under section 154 are deemed to be dropped can be founded with the above amendments. The action of Ld.AO cannot be termed as lack of enquiry in the present facts of the case. Thus we quash the impugned order passed under section 263 of the Act. - Decided in favour of assessee.
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