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PRATIK ENTERPRISE Versus DEPUTY COMMISSIONER OF INCOME TAX

2016 (8) TMI 160 - GUJARAT HIGH COURT

TDS liability u/s 194C - payments on account of Civil and grass cutting, construction and maintenance and for painting job work - Held that:- Exchange of information between the assessee and the Assessing Officer though may not have direct bearing on the requirement of deducting tax at source in relation to such expenditure, undisputedly, these expenditures came pointedly under scrutiny of the Assessing Officer in connection with genuineness thereof. The fact that the Assessing Officer in his or .....

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on this sole ground, therefore, was not permissible. - Additionally, we also notice that para4 of the Assessing Officer's letter dated 26.9.2008 require the assessee to supply copy of ledger account of tax deducted from various payments made to subcontractor, job work charges, transportation, etc. In response to such inquiry of the Assessing Officer, the assessee conveyed that during the year under consideration, no tax had been deducted at source. In short, the case of the assessee was that .....

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HE PETITIONER : MR TUSHAR P HEMANI, ADVOCATE, MS VAIBHAVI K PARIKH, ADVOCATE FOR THE RESPONDENT : MR PRANAV G DESAI, ADVOCATE ORAL ORDER (PER : HONOURABLE MR.JUSTICE AKIL KURESHI) 1. The petitioner has challenged a notice dated 29.3.2012 issued by the respondent Assessing Officer under which he desired to reopen the assessment of the petitioner for the assessment year 2006-2007. 2. Brief facts are as under. The petitioner is a firm engaged in the business of civil construction, civil maintenance .....

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icer had recorded following reasons for issuing the notice : Vide your legal representative's letter dtd. 23/01/2013, you have requested to furnish the reasons for reopening the assessment in your case for A.Y. 2006-07. Accordingly, you are being informed that on verification of the case records it is seen that you had paid various payments on account of Civil and grass cutting, construction and maintenance and for painting job work & these payments were subjected to TDS u/s.194C of the .....

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wer supplier Rs.3,37,590/- 6 Dinesh Makwana Civil & Grass cutting Rs.3,98,616/- 7 Govindbhai Civil & Grass cutting Rs.3,75,056/- 8 Gupta Construction Civil & Grass cutting Rs.25,64,598/- 9 Jena Civil & Grass cutting Rs.1,14,158/- 10 J.P. Gupta Civil & Grass cutting Rs.1,34,078/- 11 Karubhai Civil & Grass cutting Rs.1,68,278/- 12 Mamta Construction Civil & Grass cutting Rs.32,01,744/- 13 Mansukhbhai Contractor Civil & Grass cutting Rs.5,34,029/- 14 Muru Paba Civil .....

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of ₹ 1,19,72,036/- was made without deducting the tax at source. As such income to the extent of ₹ 1.19,72,036/- was required to be disallowed by invoking the provisions of section 40(a)(ia) since income to this extent has escaped to be taxed, the assessment has been reopened by issue of notice u/s.148 of the Act. 3. With reference tot he above, please support your submission on each point with necessary evidence on or before 24/01/2013. 3. The petitioner raised various objections to .....

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examined by the Assessing Officer during the original scrutiny assessment. Such issue therefore, cannot be gone into in reassessment. 3) even otherwise, there was no tangible material at the command of the Assessing Officer to form a belief that income chargeable to tax had escaped assessment. 5. The impugned notice having been issued beyond a period of four years from the end of relevant assessment year, a vital requirement to be satisfied would be whether income chargeable to tax had escaped a .....

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source which requirement the assessee had not complied. This figure of total payment of ₹ 1.03 crores, as per the reasons recorded, also emerge from the verification of the case records. In other words the fact that the assessee made these payments to various agencies was very much part of the record of the assessment. If that be so, we fail to see how the assessee can be blamed for nondisclosure of true and correct facts. 6. Quite apart from this, these payments came up for direct discus .....

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ks expenses, Construction & Maintenance expenses, Man power supplied by subcontractors, Raw materials purchase, Painting Job Work exp, Safety Item purchase, Salary (labour) for CDS & IPCL. 7. In reply to such notice, the assessee replied on 27.12.2008 in which he had supplied the following details : 4. Copy of Ledger A/Cs of tax deducted from various payments made to sub contractors, job work charges, transportation and interest with copy of TDS return filed. 7. Details of the following .....

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and maintenance expenditure and manpower supplied by the subcontractors besides other expenditures. In response to such query, the assessee supplied details of all such expenses with supporting evidence. This exchange of information between the assessee and the Assessing Officer though may not have direct bearing on the requirement of deducting tax at source in relation to such expenditure, undisputedly, these expenditures came pointedly under scrutiny of the Assessing Officer in connection wit .....

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