TMI Blog2017 (4) TMI 569X X X X Extracts X X X X X X X X Extracts X X X X ..... e u/s. 40(a)(ia) of the Act invoking sec. 194C of the Act as has been done by the AO. Assessee during the original assessment which was concluded on 13.05.2008 has made a claim of deduction that the amount of ₹ 45,74,228/- has been given to truck owners about 300 in numbers and details of it were mentioned in more than 110 pages in respect to the amount of ‘freight paid’ and just because word commission has also been added in the 3CD report along with the hiring charges to the transporters cannot be the ground on which the department can turn around and term that the entire amount has been paid for commission and not for hiring charges when the facts emerging from the assessment leaves no scope for any doubt that claim made by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as not deducted tax at source on the said amount, he disallowed the said amount/s. 40(a)(ia) of the Act. Aggrieved, the assessee preferred an appeal before the Ld. CIT(A), who was pleased to delete the same. Aggrieved, the revenue is before us. 4. We have heard rival parties and perused the material available on record. We note that the AO has described the payment made to the transporters which details are available in about 110 pages and contained registration number of about 300 trucks. In the opinion of the AO, engagement of such large number of trucks creates doubt and he further observed that only truck numbers have been given and names and addresses of the transporters have not been entered in the records of the assessee. The asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the AO has taken note of the fact that the assessee has contravened section 194C of the Act while making payment of a sum of ₹ 45,74,228/- which was paid as hire charges and commission to transporters. Thereafter, we take note that the AO has categorically recorded in page 3 of his order that regarding transportation charges and commission paid to transporters ₹ 45,74,228/- without deducting tax u/s. 194C the assessee has furnished date wise list of truck numbers in 110 pages containing about 300 number of trucks and amount of freight paid. Name and address of the transporters are not mentioned. In the absence of name and address of the transporters required to be furnished by the assessee, the genuineness and bona fide of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hiring charges to the transporters cannot be the ground on which the department can turn around and term that the entire amount has been paid for commission and not for hiring charges when the facts emerging from the assessment leaves no scope for any doubt that claim made by the assessee was for hiring of trucks and disallowance was made by AO invoking section 194C of the Act. Therefore, we do not find any infirmity in the order passed by the Ld. CIT(A) and, therefore, we dismiss the appeal filed by the revenue. 5. In the CO, the assessee has assailed the confirmation of addition of ₹ 5 lacs which he has not pressed during the time of hearing of appeal because of smallness of the amount, as well as the ground challenging the reop ..... X X X X Extracts X X X X X X X X Extracts X X X X
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