TMI Blog2015 (2) TMI 847X X X X Extracts X X X X X X X X Extracts X X X X ..... ccordance with the provisions of section 201(1) and the proviso. This was not the claim made by the assessee before the Assessing Officer. The claim was on a different stand, initially reflecting the amounts as loan in the account books though shown as freight charges in the returns and later explained that it was not the loan amount but freight charges. It was never the case of the assessee that there was no mandate subsequent to the amendment, to deduct tax as TDS in the light of above provisions. The assessment year in question is 2007-08 and the amendment giving breathing space to payer of amounts is with effect from April 1, 2013. Therefore, the said benefit is not applicable to the assessee. Even otherwise, on factual situation, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... claimed to be freight charges is ₹ 7,02,010. 3. When the matter was taken up for scrutiny, it was found that the firm did not deduct TDS on the above said amount. According to the appellant- firm, as indicated in the orders of the Assessing Officer, ₹ 16,79,345 was the amount accepted by the assessee as loan and, therefore, they had shown the repayment. However, on verification, when explanation was called for, the assessee explained that although the said amount has been classified as loan, the amount credited in their names actually represents lorry hire charges and they proceeded to submit further that they have obtained Form No. 15-I from those parties, and filed Form No. 15J. In the statement of accounts pertaining to S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d or, after deduction, has not been paid on or before the due date specified in sub- section (1) of section 139. The second proviso to section 40a(ia) is relevant for the purpose of this case which reads as under : Provided further that where an assessee fails to deduct the whole or any part of the tax in accordance with the provisions of Chapter XVII-B on any such sum but is not deemed to be an assessee in default under the first proviso to sub-section (1) of section 201, then, for the purpose of this sub-clause, it shall be deemed that the asses see has deducted and paid the tax on such sum on the date of furnishing of return of income by the resident payee referred to in the said proviso. It is inserted by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be charged under section 221 from such person, unless the Assessing Officer is satisfied that such person without good and sufficient reasons, has failed to deduct and pay such tax. 5. Reading of section 40(a)(ia) along with the second proviso and section 201(1) along with the proviso, it would mean that the mandate or requirement on the part of the payer to deduct tax at source is not so strict if they are able to show that the payee or the recipient of the amounts has paid tax in accordance with the provisions of section 201(1) and the proviso. 6. This was not the claim made by the assessee before the Assessing Officer. The claim was on a different stand, initially reflecting the amounts as loan in the account books though shown a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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