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2022 (6) TMI 731 - ITAT CHANDIGARHNon grant the credit of TDS - credit denied as assessee had not offered the freight receipts as income for the relevant year under consideration - as argued assessee had shown the net of the Gross receipts of the Freight services against the disbursements to the Ex-servicemen truck owners in its audited books of accounts, and thus have fulfilled the requirements as specified in the provisions of Section 199 read with Rule 37BA of The Income Tax Act 1961 - HELD THAT:- We find ourselves unable to confirm the orders passed. The factual matrix as noticed in the orders and as argued has remained unaddressed. It is necessary for us to highlight that under the Scheme of the Income Tax Act, what is to be brought to tax is the specific income arising from the stated activity in the specific period. It has been repeatedly canvassed and we notice that the argument has not been upset by the Tax Authorities. The assessee society incorporated under the HP Ex-Servicemen Corporation Act, 1970 was created to provide employment/financial benefits to the retired Defence personnel. The cement companies including A.C.C. Ltd., J.P. Cements etc. required the cement to be lifted and transported from the premises entered into an agreement with the assessee. Admittedly the assessee Society/Corporation did not own any trucks and agreements were entered into with ACC Ltd., Ambuja Cement etc. for transporting cement etc. from the premises. Since the assessee corporation did not own any trucks, these were hired by the Corporation and commission income from the said hiring activity was the income received by the Corporation only. However, since trucks have been engaged through the assessee by ACC Ltd. etc., the TDS deducted etc. payments by the ACC Ltd. were paid to the truck owners through the assessee, pleadings to this effect, we have noticed have been extracted in the respective orders, however, while passing the order, the AO, we find, has been guided by the fact that credit of TDS of freight receipts cannot be allowed as no freight receipts have been disclosed. Similarly, the ld. Commissioner is also influenced by this fact has confirmed the order. It is a fact that the freight receipts are not offered as income of the assessee as the income of the assessee was only commission income. The claim on facts needs to be examined by the Tax Authorities. Accordingly, on a perusal of the record and in the light of the submissions of the parties, we find that in the interest of justice, it is appropriate to set aside the respective orders and restore the issue back to the file of the CIT(A) for a proper consideration on facts - Appeal of the assessee is allowed for statistical purposes.
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