TMI Blog2014 (6) TMI 812X X X X Extracts X X X X X X X X Extracts X X X X ..... issued, the assessee can claim that it has a bonafide belief that tax is not required to be deducted on the basis of the certificate for the payment exceeds the exemption limit specified in the certificate. - Ld.CIT(A) is not justified in confirming the disallowance made by the AO on this count. - Decided in favor of assessee. Disallowance u/s 40A(3) of the Act – Cash payment eceeds limit on single day – Held that:- section 40A (3) has been w.e.f 01/04/2009 providing that all the payments made to a person in a single day would be considered for making the disallowance - The amendment is not applicable so far as the case in hand being related to the AY 2008-09 - In the absence of a provision conferring the power to aggregate all the paym ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /s. Shyam Trailor and Transport, out of which the assessee did not deduct tax in respect of Rs.11,000/-. The AO further noticed that the assessee had paid hire charges of Rs.43,73,530/- to M/s. Jindal Roadways Pvt. Ltd, out of which TDS was not deducted in respect of Rs.8,73,500/-. Therefore, the AO disallowed a sum of Rs.8,84,500/- (Rs.11000+8,73,500) u/s 40(a)(ia) of the Act. On appeal, the Ld. CIT(A) confirmed the disallowance made by the AO as rejecting the contention of the assessee that since the payment itself was Rs.11,000/-, there was no liability to deduct tax. As regards the payments to M/s. Jindal Roadways P. Ltd, the Ld. CIT(A) confirmed the disallowance by rejecting the claim of the assessee that the assessee was only acting a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0/-made/confirmed by the AO/Ld.CIT(A) on this count. 2.2.1 So far as the non deduction of TDS in respect of the payment of Rs.8,73,500/- made to M/s. Jindal Roadways Pvt. Ltd Transport, it is the contention of the assessee that the Department has issued the certificate for non deduction of tax at source u/s 197 and the assessee has inadvertently omitted to deduct tax at source for the amount of Rs.8,73,500 paid in excess of Rs.35,00,000/-, which is a bonafide mistake of the assessee. In this connection, the Ld.AR has relied on the decision of the Tribunal in the case of Hero MotoCorp Vs ACIT, [2013] 60 SOT 25 (Delhi-Tribunal) wherein it has held that where the certificate u/s 197 has been issued, the assessee can claim that it has a bona ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a single day and each payment has been less than Rs.20,000/-. Further, for the purposes of section 40A (3) as applicable in the assessment year under consideration, only single payment during the day has to be considered whereas the authorities below have aggregated all the payments made in a single day which is permissible under the amended provision only. On the other hand, it is the contention of the Revenue that the cash book and vouchers reveals that the payments have been made in 3-4 times a day to the same person under the same bill and voucher number, which suggests that the vouchers have been prepared in such a way that the payments have been made on different occasions though the assessee has made a single payment. After consideri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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