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2021 (1) TMI 260 - HC - Income TaxReopening of assessment u/s 147 - Disallowance u/s 40(a)(ia) - Failure to Deduct TDS - Assessee has not disclosed the freight receipts from the Exporters and the net freight payment made which is covered u/s 194C as payment to a sub-contractor - It is claimed the payment was received on behalf of others - HELD THAT:- As brought to the notice of this Court by the Learned Counsel for the Petitioner that after the filing of the Writ Petition, there has been amendment to Section 40(a)(ia) of the IT Act and that the Hon'ble Supreme Court of India in Commissioner of Income Tax, Kolkata XII -vs- Calcutta Export Company [2018 (5) TMI 356 - SUPREME COURT ] has held that the said amendment would have retrospective applicability from the date of its insertion with effect from the assessment year 2005-2006 in order to remove the unintended consequences which were causing grave and genuine hardships to the assessees and remedy that position In Commissioner of Income Tax -vs- Cargo Linkers [2008 (3) TMI 619 - DELHI HIGH COURT] where in recognition of the fact that similarly placed clearing and forwarding agents in the industry had not been deducting tax at source till 31.03.2005, it was held that since the contract is actually between the exporter and the airline, and the clearing and forwarding agent is only an intermediary, it is not the person responsible for the deduction of tax at source in terms of Section 194-C Taking into account the peculiar features of this case, it shall be incumbent upon the Respondent to afford opportunity of personal hearing to the Petitioner and thereupon, the Respondent shall deal with each of the contentions raised by the Petitioner, uninfluenced and uninhibited by the earlier views expressed by the Respondent in the matter, and pass reasoned orders on merits and in accordance with law and communicate the decision taken to the Petitioner under written acknowledgment.
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