TMI Blog2017 (10) TMI 1342X X X X Extracts X X X X X X X X Extracts X X X X ..... ub contractor against freight to 50 parties in compliance of provision of section 194C(2) for non deduction of TDS. The delay in submission of form no. 15J to the competent authority is a procedural formality, (iii) Not bringing any material, oral or written agreement between the assessee in the recipients of goods for transportation on record during the assessment proceeding to prove the relation of sub contract and (iv) The payment to the subcontractor has not been doubted by the AO. There was no contract between the assessee and the recipients of goods for transportation 2.If the assessee has obtained form no. 15-I then it is substantial compliance of the provision of section 194C. Hence, hereby delete the total disallowance made u/s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other transport operators namely M/s Pawan Roadlines, Gandhi Dham, Shree Balaji Roadlines, Mahendra Garh, Shree Ram Roadlines, Gandhi Dham and such other parties. The assessee has furnished consolidated P L A/c and during the assessment proceedings separate profit and loss account for own trucks as well as for other transport companies were asked for. The separate Profit and Loss account furnished revealed that assessee has shown net loss of ₹ 1,22,457/- on account of running of 4 trucks. The detailed Profit and Loss Account filed alongwith letter dated 3.12.2009 was examined and the assessee was asked to furnish necessary details in support of the expense claimed and also to produce complete books of accounts and bills and vouc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... making TDS. The assessee has claimed TDS of ₹ 7,20,973/- which has been deduced from the sub-contractors and credit has been claimed by him without refunding the same to the sub-contractors. As in the assessee s case the entire receipts are subject to TDS and during the year under consideration the assessee has claimed TDS of ₹ 720936/-, for which he has been issued TDS certificates by respective parties and the assessee has claimed TDS credit for the same. This TDS has been borne by sub-contractors, therefore a sum of ₹ 720936/- is added to the total income of the assessee. As the assessee has concealed income and furnished inaccurate particulars of income, penalty u/s 271(1) (c) has been initiated. 4. She has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y within the stipulated period is concerned, it is a procedural matter and technical matter and on simply a such basis, disallowance u/s 40(a)(ia) cannot be made. In this regard, we rely upon the decision of Hon ble ITAT Ahmedabad Bench A Ahemdabad in case of Valibhai Khan Bhai Mankad Ahnmedbad Vs. Dy. CIT (OSD). Ahmedbad (ITA No. 2228/ahd/2009) dated 29/04/2011 and it was held that: assessee had obtained from No. 15-I from the sub contractors whose contents are not disputed or whose genuineness is not doubted, than assessee is not liable to deduct tax from the payments made and when once assessee is not liable to deduct tax u/s 194C, then addition u/s 40(a) (ia) cannot be made- Thus submission of From No. 15J is only a pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssible limit of gross receipts ₹ 40 Lacs), (ii) Discharging of liability for obtaining form no. 151 before making the payment to sub contractor against freight to 50 parties in compliance of provision of section 194C(2) for non deduction of TDS. The delay in submission of form no. 15J to the competent authority is a procedural formality, (iii) Not bringing any material, oral or written agreement between the assessee in the recipients of goods for transportation on record during the assessment proceeding to prove the relation of sub contract and (iv) The payment to the subcontractor has not been doubted by the AO. Therefore, my view is in conformity with the decision taken by Hon ble Punjab and Haryana High Court in case of CIT vs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... agreement between assessee in recipients of goods for transportation on record during assessment proceedings to establish relation of Sub-contractors, Iv. Payment to Sub-contractor has not been doubted by Assessing Officer. In view of above, CIT(A) was justified in deleting the addition in question. Same is upheld. 6. She has relied on Rule 29-D of the Income Tax Act which reads as under:- [Form of declaration under second proviso/third proviso to clause (i) of sub-section (3) of section 194C.* 29D. (1) The declaration under the second proviso to clause (i) of sub-section (3) of section 194C by a sub-contractor shall be in Form No. 15-I and shall be verified in the manner indicated therein by such subcontractor. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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