TMI Blog2017 (1) TMI 45X X X X Extracts X X X X X X X X Extracts X X X X ..... or resorting to do the service from the registered dealers. In our view, the action of the AO/CIT(A) is proper. Hence, the ground raised by the assessee is dismissed. - ITA No. 1418/Hyd/2015 - - - Dated:- 28-12-2016 - SMT P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER For The Assessee : Shri G. Manikya Prasad For The Revenue : Shri K.J. Rao ORDER PER S. RIFAUR RAHMAN, A.M.: This appeal filed by the assessee is directed against the order of CIT(A)-2, Hyderabad, dated 23/10/2015 for AY 2010-11. 2. Briefly the facts of the case are that the assessee is a company engaged in the business of transport contracts, filed its return of income for the AY 2010-11 on 23/09/2011 declaring an income of ₹ 92,95,090/-. The AO completed the assessment u/s 143(3) by making the following additions/disallowance: i) Disallowance of vehicle hire charges ₹ 1,20,03,110 ii) Disallowance u/s 40a(ia) ₹ 3,39,125 iii) Disallowance Rates Taxes ₹ 13,73,924 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... racted by the CIT(A) at pages 5 to 7 of his order. In response to the remand report, the AR of the assessee submitted that as there were no adverse remarks on the expenditure of ₹ 1,20,03,110/-, the same may kindly be allowed. 6. After considering the submissions of the assessee and remand report of the AO, the CIT(A) confirmed the disallowance made by the AO holding that the assessee has not fully furnished necessary details for the said expenditure of ₹ 1,20,03,110/- incurred towards vehicle hire charges during remand proceedings also. 7. Before us, the ld. AR submitted that the assessee firm is carrying on business of Transport Services providing vehicles to various companies on a contract basis for the conveyance of the employees of the said companies. (pickup and dropping of the employees from various places to the place of employment back). He submitted that assessee has entered into formal agreement with various companies for providing such services. The Cab Services and bus services are provided to various multinational Companies and Software Companies (various divisions) in and around Hyderabad. The Major Customers of the Assessee include Deloitte and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... temporary hirers as there are no TDS liability as the payments were below the specified limits u/s 194C i.e. ₹ 20,000/-. It is submitted that the Assessee made payments to temporary transporters immediately on the basis of the bills submitted by the transporter. It is contended that while completing the Assessment the Assessing officer disallowed the total expenditure of ₹ 1,20,03,110/- on the ground that the ledger does not carry PAN Number or letters or registration Copies from the transport authorities regarding the proof of registration of the vehicle. 7.3 Before us, the assessee filed paper book of about 402 pages containing copies of the agreement with various companies, copies of invoices of different companies, copies of proforma trip sheets, copies of vehicle hire charges paid for the month of May, 2009, copy of bank confirmation letter regarding payment of vehicle taxes. 8. The ld. DR submitted that the assessee has to acquire the PAN details before making payments and relied on the orders of revenue authorities. 9. Considered the rival submissions and perused the material facts on record. The assessee has received total hire charges of ₹ 13.95 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made primarily to three parties ICICI Bank ₹ 3,51,954/-, ING Vysa Bank ₹ 6,33,957/- and Tata Motors Limited ₹ 35,39.125. . AO observed that no TDS was made on these payments. When the assessee was requested to furnish his objections for not disallowing the same, the assessee stated, with regard to payments made to the bank the provisions of TDS were not attracted, but with regard to payments made to Tata Motors Limited provisions of 194A are duly applicable and the TDS was not done. Since the assessee has failed to discharge his duties regarding TDS on payments made to Tata Motors Ltd aggregating to ₹ 3,39,125/-, the AO disallowed the same. 11. Before the CIT(A), the AR of the assessee relied on the Board s Instruction No. 1425, F. No. 275/9/80, dated 16/11/1981 for non deduction of tax. Since the AR of the assessee has not furnished any details evidencing hire purchase agreement during the appellate proceedings, the CIT(A) confirmed the disallowance of ₹ 3,39,125/-. 12. Before us, the ld. AR submitted that the payment to TATA AIG is EMI payment and kind of finance charges against hire purchase agreement and relied on the Board Instruction No. 14 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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