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Income-tax Officer, Wd-28 (3) , Kolkata Versus Shri Ran Vijay Singh

2016 (7) TMI 745 - ITAT KOLKATA

TDS u/s 194C - Disallowance u/s 40(a)(ia) - tds on Transportation Charges - CIT(A) deleted the addition - Held that:- We find that the Ld. CIT(A) had categorically given a finding that the assessee sufficiently owned number of trucks and depreciation has been granted to the assessee by the AO on the same. We find that the Ld. CIT(A) had verified the P&L Account of the assessee and had come to a conclusion that the “Transportation Charges” includes only fuel expenses, tyre expenses, trip expenses .....

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appeal by revenue is arising out of order of CIT(A)-XIV, Kolkata vide appeal No. 125/CIT(A)-XIV/11-12 dated 28.03.2013. Assessment was framed by DCIT, Circle-28, Kolkata u/s. 144 of the Income tax Act, 1961 (hereinafter referred to as the Act ) for AY 2006-07 vide his order dated 10.11.2008. 2. The only issue to be decided in this appeal of revenue is as to whether the Ld. CIT(A) is justified in deleting the addition made in the sum of ₹ 39,12,411/- u/s. 40(a)(ia) of the Act in the facts a .....

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lso observed that the assessee received income as contractor from various parties which is evident from the TDS Certificate filed by the assessee and AIS information. Therefore, the assessee is liable to deduct tax from the payment of ₹ 39,92,411/- made to subcontractor under the head Transportation Charges . But the assessee did not deduct any tax which is evident from the column 27(a) of Form 3CD filed along with the return. Accordingly, ₹ 39,12,411/- is disallowed and added to tot .....

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e the ld. CIT(A) that no disallowance was made by the Ld. AO in AY 2005-06 under the similar set of facts and circumstances. The Ld. CIT(A) observed that there was no contract with any transporter for hiring of trucks entered into by the assessee because the assessee owned sufficient number of trucks which is evident from the depreciation schedule of the assessee. The Ld. CIT(A) thereafter placed reliance on the decision of the Hon ble Kolkata High Court in the case of CIT Vs. M/s. Stumm India i .....

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Law as well as in fact by deleting the disallowance u/s 40(a)(ia) of ₹ 39,12,411/-, on account of Prestige trading Co., on the premise that in the instant case "Transportation Charges" included only expenses like fuel expenses, tyre expenses, trip expenses, Drivers Salary etc., which did not attract the provisions of deduction of tax as per I. T. law, as no break-up or any bills/vouchers, in respect of the said expenses were either produced at the assessment stage or at the appe .....

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nce Sheet, P&L Account were examined by the Ld. CIT(A) on his own and no remand report was called for by the Ld. CIT(A) from the AO. Accordingly, he prayed for setting aside the issue to the file of the Ld. AO in the interest of justice. 6. In response to this, Ld. AR argued that no fresh evidence were filed before the Ld. CIT(A) by the assessee. The Ld. CIT(A) simply verifying the P&L Account of the assessee found that the Transportation Charges included fuel expenses, tyre expenses, tr .....

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Act, the Ld. AO should be fully satisfied with reference to the books of account that certain payments were indeed made beyond ₹ 20,000/- warranting deducting of tax at source towards hire charges in terms of section 194C of the Act. Admittedly, no books of account were produced before the AO by the assessee and in such an event the Ld. AO ought to have only resorted to estimated disallowance of Transportation Charges but could not make any disallowance u/s. 40(a)(ia) of the Act without c .....

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ia, supra. 7. We have heard rival submissions and gone through facts and circumstances of the case. We find that the Ld. CIT(A) had categorically given a finding that the assessee sufficiently owned number of trucks and depreciation has been granted to the assessee by the AO on the same. We find that the Ld. CIT(A) had verified the P&L Account of the assessee and had come to a conclusion that the Transportation Charges includes only fuel expenses, tyre expenses, trip expenses and driver s sa .....

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