TMI Blog2015 (10) TMI 1489X X X X Extracts X X X X X X X X Extracts X X X X ..... he provisions of section 40(a)(ia) of the Act. If the assessee has defaulted in furnishing the copy of the prescribed form no.15-I received by it within the prescribed time, then the consequence for that default may follow, but certainly disallowance under section 40(a)(ia) of the Act cannot be made. DR could not produce before us the copy of form no.15-I furnished by the assessee to the income-tax authorities, and nor has been able to point any material to show that the assessee was liable to deduct TDS on payment made to sub-contractors from whom it received declaration in the prescribed form. Our above view finds supports from the decision of the Hon’ble Gujarat High Court in the case of CIT Vs. Valibhai Khanbhai Mankad, (2012 (12) TM ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1961 without considering the fact that the appellant had obtained Form No. 151 from the deductee. (b) On the facts and in the circumstances of the case, the learned Commissioner of Income-tax (Appeals) has erred in not appreciating the fact that the appellant is absolved from liability of TDS as soon as Form No. 151 is obtained from the deductee and the procedural lapse for submitting Form No. 15J will not invite the liability of TDS which had already been absolved. 4. We have heard rival submissions and perused the orders of the lower authorities and material available on record. In the instant case, it is not in dispute that the assessee paid ₹ 28,70,136/- to his transporting sub-contractors on which no tax was deducted at s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om such subcontractors in respect of transport of goods, then the assessee cannot legally deduct tax at sources on the payment made to such subcontractors, when the payment or credit to the sub-contractor is earlier at which point of time, the assessee otherwise was required to deduct tax at source, and the date of filing the copy of declaration to the Income-tax authorities, is later than the same. Thus, furnishing of copy of declaration to the Income-tax authorities by the assessee was not a condition precedent for not deducting TDS on payment made to the sub-contractors, rather the receipt of declaration by the assessee in the prescribed form was sufficient for the assessee to make the payment to sub-contractors without deduction of TDS ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to point any material to show that the assessee was liable to deduct TDS on payment made to sub-contractors from whom it received declaration in the prescribed form. The assessee had received declaration from the sub-contractors to whom the payment in question was made is not in question, and is evidenced from the fact that the copy of the said declaration was filed by the assessee before the prescribed authorities on 25.11.2009, and therefore, in our view, the disallowance made under section 40(a)(ia) cannot be sustained. 11. Our above view finds supports from the decision of the Hon ble Gujarat High Court in the case of CIT Vs. Valibhai Khanbhai Mankad, (2012) 28 taxmann.com 119 (Guj) wherein it was held that once conditions in second ..... X X X X Extracts X X X X X X X X Extracts X X X X
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