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2017 (4) TMI 350 - AT - Income TaxTDS u/s 194C or 194I - disallowance on hire charges paid for tippers/tractors/water tankers under section 40(a)(ia) - Held that:- The assessee fails to bring on record any evidence to prove that it is a simple hire of tippers/tractors/water tankers, but not work. Though, the Authorized Representative of the assessee pressed upon the findings of the Commissioner of Income Tax, in the revision proceedings, on perusal of the order of the Commissioner of Income Tax, we find that the Commissioner of Income Tax has not given any findings with regard to nature of transaction, to come to a conclusion that the payments are coming under section 194-I. Therefore, we are of the view that hire charges incurred by the assessee for hiring the tippers/tractors/ water tankers is coming within the meaning of term ‘work’ as defined in Explanation-(iv) of section 194-C of the Act. The Commissioner of Income Tax (Appeals) without any reason, simply observed that the impugned payments are made for hire of tippers/tractors/ water tankers etc. and such payments are not made for execution of works contract. Therefore, we set aside the order passed by the Commissioner of Income Tax (Appeals) and upheld the additions made by the Assessing Officer towards disallowance of hire charges under section 40(a)(ia), for failure to deduct tax at source under section 194-C of the Act, for both years. Difference in gross turnover as per the books of account and as per the TDS certificates - Held that:- The assessee claims that it is reconciled the difference, failed to explain how withheld amount has been excluded from the gross receipts with necessary calculations. On the other hand, the Assessing Officer has clearly brought out the facts to the effect that the amount mentioned in the TDS certificate and recoveries made towards TDS, withheld amount and other deductions is tallied with the gross amount certified by the contractees. Therefore, we are of the view that the Assessing Officer was right in making additions towards difference in turnover as per books of account and TDS certificates. The Commissioner of Income Tax (Appeals) without appreciating the facts, simply observed that the difference represents amount withheld earlier and released for payment now, but which was already offered to tax as part of gross receipts. Therefore, we set aside the order passed by the Commissioner of Income Tax (Appeals) and upheld the additions made by the Assessing Officer towards difference in turnover as per books of account and TDS certificates.
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