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TMI Blog2012 (9) TMI 681X X X X Extracts X X X X X X X X Extracts X X X X ..... rtakings. The assessee gets the contract for transport of goods on the basis of rate contract. These rate contracts are entered through a process of public tender. The assessee company does not own a fleet, but owns only few trucks. It has to give contracts to truck operators for transporting the goods. The assessee gets payment from the clients as per the rate contracts and makes payment to the truck operators on the basis of contract entered between the assessee and the operators. The payments made to the truck operators are debited to hire charges account. The Assessing Officer found that TDS were not deducted for payment made to the truck operators. He held that since the payment made to the transport operators totaling to Rs. 3,02,69, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ggrieved for not deleting the disallowance made u/s 40(a)(ia) and also for estimation of higher net profit rate, where as Revenue is aggrieved for reducing the net profit estimated by the Assessing Officer at 8% by upholding disallowance of part of the expenses. 5. We have considered the rival submissions and have gone through the orders of the authorities below and found from record that the assessee was carrying on business of transportation of goods. Return of income was filed alongwith the audited accounts. On the total hire charges and other income of Rs. 3.38 crores, the assessee has declared net profit of Rs. 7.00 lakhs, thus, net profit rate was shown at 2.06 %. During the course of scrutiny assessment due to the dispute between th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble Rajasthan High Court in the case of Shri Choudhary Transport Company, 225 CGTR 125.We are in agreement to this contention of ld. CIT DR that payment made by assessee to other transporters come within the purview of Section 194C and assessee is under obligation to deduct tax at source on such payment. 6. After going through the entire material placed on record, we found that even though books of account were audited, but the same was not produced before the Assessing Officer nor before CIT(A) for verification and the audit report mentioning fact that there was no requirement for deduction of TDS on hire charges paid which was below the prescribed limit, cannot be accepted in the absence of books of account and payment vouchers. Accordin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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