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2015 (10) TMI 1489 - ITAT AHMEDABAD

2015 (10) TMI 1489 - ITAT AHMEDABAD - TMI - Disallowance u/s 40(a)(ia) with regard to Section 194C - non furnish the declaration to the income-tax authorities, within due date - Held that:- Merely because the assessee did not furnish the declaration to the income-tax authorities, within due date, which was after the date on which the assessee could have otherwise deducted tax at source, it cannot be held that the assessee made any default by not deducting the tax at source. Therefore, as the ass .....

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ot 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) TMI 413 - GUJARAT HIGH COURT ) wherein it was held that once condit .....

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gainst the order of the Commissioner of Income-Tax (Appeals)-VI, Surat dated 23.9.2010. 2. The appeal filed by the assessee is barred by limitation by one day. The assessee has filed condonation petition, and we are satisfied with the reasons stated therein for not presenting the appeal before the Tribunal with the prescribed time limit, and DR also had no objection to the condonation of delay of one day in fling of the appeal by the assessee. Therefore, we condone the delay and admit the appeal .....

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) 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 .....

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horities before 30.6.2007, but the assessee filed the same on 25.11.2009, and therefore, the assessee ought to have deducted TDS on the aforesaid amount, and consequently, he disallowed the same by invoking the provisions of section 40(a)(ia) of the Act 6. On appeal, the CIT(A) confirmed the action of the AO. 7. We find that the second proviso to section 194C which was in force at the material time reads as under: "Provided further that no deduction shall be made under subsection (2) from t .....

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ring the previous year." 8. Thus, a perusal of the aforesaid provisions shows that if the assessee receives declaration in Form No.15-I from 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 In .....

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has filed a copy of declaration received by her in prescribed form to the prescribed income-tax authorities on 25.11.2009. The above facts itself shows that the assessee received declaration in prescribed form from the sub-contractors to whom the payment in question of ₹ 28,70,136/- was made by the assessee. No defect in the said form could be pointed out by any of the income-tax authorities. 10. In the above circumstances, merely because the assessee did not furnish the declaration to the .....

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sessee 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. 10. 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 wh .....

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