TMI Blog2016 (7) TMI 340X X X X Extracts X X X X X X X X Extracts X X X X ..... th the provision, the principal cannot be visited with penal consequences. For one payment there could not have been two deductions. Moreover, when a person acts through another, in law, he acts himself. Thus the question, quoted above, is answered by holding that the Tribunal was wrong in holding that the appellant was liable to deduct tax at source in respect of the freight component. When the assessee was not liable to make any deduction under Section 194C, the rigours of Section 40(a)(ia) could not have been applied to him. - Decided in favour of assessee. - GA 2502 of 2010, ITA 8 of 2011, ITAT 186 of 2010 - - - Dated:- 24-6-2016 - Chandra Gupta And Tapash Mookherjee, JJ. For the Appellant : Mr. J. P. Khaitan,Sr. Advocate Mr. Siddharth Das,Advocate Mr. C.S.Das,Advocate For the Revenue : Mr. S. N. Dutta,Advocate Mr. P.Dudhoria,Advocate ORDER The Court : - The appeal is directed against a judgment and order dated 19th March, 2010 passed by the Income Tax Appellate Tribunal C Bench, Kolkata in ITA No. 2053/Kol/2009 pertaining to the assessment year 2006-07. The assessee has come up in appeal. The assessee is aggrieved by the following finding of the lea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,675/- in their invoices from him and paid to the transporter M/s. Reliance Logistics Ltd. during the F.Yr. 2005-06, after making necessary TDS deduction which have been deposited under TAN No. BRDIOO275C. I have gone through the documents furnished before me. As seen from the invoice produced before me for the months of April, 2005 and May, 2005, the transporter s name is mentioned as Delhi, Assam Roadways Corporation Ltd. and not M/s. Reliance Logistics Ltd. This was pointed out to the Ld. Authorized Representative. However, no explanation in this regard was given by him. The objective of TDS provisions is to ensure that there is proper tax compliance by the assessees. Similarly, in the case of M/s. Gulshan Sugars and Chemicals Ltd. the freight charges have been reimbursed through sale invoices to M/s. Limra Roadways. As seen from Form No. 16A filed by the appellant PAN/GIR no. of the payee Limra Roadways is not available. The details of payment made by M/s. Guishan Sugars Chemicals Ltd. to Limra Roadways cannot be correlated to the reimbursement from the appellant. The Ld. AR also could not relate the payments. In this situation it is very difficult to accept the contention of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the notice of the Learned Tribunal because the letter was received after the hearing was concluded. The letter dated 18th March, 2010 addressed by Reliance Industries Limited to the assessee reads as follows: Sub: Furnishing of Information u/s 133(6) of the IT Act 1961 in respect of M/s. Hightension Switchgears Pvt. Ltd. for the A.Y. 2006-07 Sir, This has reference to your aforesaid letter dated 10.03. 2010 and subsequent discussions over the phone. We would like to inform you that M/s. Reliance Logistics Limited (RLL) is our main contractor for transportation of material by road from Plat. This company in turn deputes various transporters for dispatch of materials to various locations across the country from the plants located at Hazira, Jamnagar, Baroda, Gandhar Nagothane. Hence in your case the material was transported through M/s. Delhi Assam Roadways Corporation Limited who is a sub contractor for transportation of material by road from plant of M/s. Reliance logistics limited. We understand that Indian Petrochemical Corporation Limited merged with Reliance Industries Limited. Therefore, Reliance Industries Limited is a transferee company o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ovided as follows: Any person responsible for paying any sum to any resident (hereafter in this section referred to as the contractor) for carrying out any work (including supply of labour for carrying out any work) in pursuance of a contract between the contractor and .. shall, at the time of credit of such sum to the account of the contractor or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, [deduct an amount equal to (i) one per cent in case of advertising, (ii) in any other case two per cent, of such sum as income-tax on income comprised therein Explanation III to Section 194C as it stood at the relevant point is also relevant for our purpose, which reads as follows: Explanation III For the purpose of this section, the expression work shall also include (a) advertising; (b) broadcasting and telecasting including production of programmes for such broadcasting or telecasting; (c) carriage of goods and passengers by any mode of transport other than by railways; (d) catering. From a combined reading of the provisions set out above, it ..... X X X X Extracts X X X X X X X X Extracts X X X X
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