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Income Tax Officer, Corporate Ward 2 (2) , Chennai Versus M/s. Globe Transport Corporation Pvt. Ltd

2015 (12) TMI 688 - ITAT CHENNAI

TDS u/s 194C - Deduction of TDS on lorry high charges - applicability of provisions of sec.40(a)(ia) - Held that:- We are of the opinion that the provisions of Sec.40(a)(ia) of the Act are applicable only when the amount of expenditure is payable and outstanding as on 31st March of the previous year in which the assessee has claimed expenditure. The additional information was filed before the Commissioner of Income Tax (Appeals) and no remand report was called for from Assessing Officer. It is a .....

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.1783/Mds/2015 - Dated:- 6-11-2015 - SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI G. PAVAN KUMAR, JUDICIAL MEMBER For The Appellant : Shri. P. Radhakrishnan, IRS, JCIT. For The Respondent : Shri. V.S. Jayakumar, Advocate ORDER PER G. PAVAN KUMAR, JUDICIAL MEMBER: The appeal is filed by the Revenue against the order of Commissioner of Income Tax (Appeals)-6, Chennai, dated 17.02.2015 for the assessment year 2006-2007 in ITA No.119/CIT(A)-6/2008-09 passed under sections 143(3) and 250 of the I .....

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selected for scrutiny under CASS and the Assessing Officer issued notice. In response to the notice ld. Authorised Representative for assessee submitted necessary details and also evidences in support of the financial statements. The Assessing Officer based on the information of Profit and Loss account restricted the preliminary expenses to 1/5th of total expenses and disallowed ₹ 28,640/-. Further, the Assessing Officer found that the company has claimed expenditure of ₹ 66,19,771/ .....

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ed an appeal before the Commissioner of Income Tax (Appeals)-6, Chennai. 4. In the appellate proceedings, the ld.AR has submitted that out of total expenditure of ₹ 66,19,771/- TDS was deducted for ₹ 33,23,095/- and for the balance amount the company has obtained Form 15I from the sub-contractors alongwith For No.15J and filed with the ITO, TDS Ward, Chennai. Further, the ld.AR submitted his claim with above documents and mentioned that such payments to truck owners have already been .....

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6 and also list of truck drivers to whom truck charges was paid has held that provisions of u/sec 40(a)(ia) cannot be invoked since above amount was already paid and there are no outstanding payable as on 31.03.2006 and further emphasized the definitions of paid and payable supported with various Tribunals decisions and High Court decisions and also relied on the decision of Apex Court allowed the appeal of the assessee observing in his order at para 4.1.8:- Further recently, the Hon ble Supreme .....

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13), I hold that the provisions of Sec.40(a)(ia) are applicable only if the amounts are payable and outstanding as on 31st March of the financial year. In the present case, since the assessee has already paid the above mentioned transport expenses as on 31.03.2006, the same cannot be disallowed u/s.40(a)(ia) of the Act. Therefore, the Assessing Officer is directed to allow the above transport expenses of _32,96,674/- as allowable deductions. The disallowance made by the Assessing Officer stands .....

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) of the Act tax has to be deducted by the assessee irrespective of amount paid or payable and made an distinction of the decision of Vector Shipping Services P. Ltd (supra) is on different ground applicable for salary payment and therefore cannot be considered and relied on judicial decisions and CBDT Circular. Further, submitted that the Commissioner of Income Tax (Appeals) has not put the materials for any verification or called for the remand report in respect of evidences filed by way of fr .....

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o material perused on record. The company is in the business of transportations and in the assessment proceedings, the Assessing Officer has disallowed the lorry hire charges without making any inquiry. The assessee has substantiated his grounds by submitting details filed in Form 15I and Form 15J before the ITO, TDS Ward on 04.04.2006 alongwith list of truck owners name and transport charges and there is no amount outstanding payable as on 31st March 2006. The ld.CIT(A) accepted the evidences f .....

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