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2020 (3) TMI 336

..... the records of CIT(A) and the AO; is contrary to the observation of the CIT(A) in paragraph 4 and 5 of the impugned consolidated appellate order dated 30.05.2016 - HELD THAT:- As the appellant has not complied with the requirement of sub section 7 of section 194C it is not entitled to the benefit of sub-section 6 though in the case of lawful compliance of sub section 7 it would have been entitled for the same. ….” In view of the foregoing, it will be in fitness of things to remit the matter to the file of the AO for fresh order after due verification at the end of the AO whether the requirements under Section 194C(7) have been complied with by the assessee. We set aside the impugned consolidated appellate order dated 30.05.2016 .....

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..... and in the circumstances of the case, the Ld. CIT(A) has grossly erred in confirming the order of Income Tax Officer (TDS), Noida, treating the appellant as an assessee in default for non-deduction of TDS u/s 194C on payments made to the Transporters. (b) That the Ld. CIT(A) has failed to appreciate that the appellant assessee has complied the provisions of sub section 7 of Section 194C of Income Tax Act, 1961 and furnished prescribed Form No. 26Q to the Income Tax Officer (TDS) alongwith relevant details required by the law. The appellant craves leave to add, alter, amend, modify or forego any of the grounds of appeal before or at the time of hearing. ITA No.-4316/Del/2016 1. The order passed by the Ld. CIT(A) is bad in law, wrong on facts .....

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..... 3.2015 of the AO. Vide impugned consolidated appellate order dated 30.05.2016 passed by the Ld. CIT(A), the assessee s appeals were dismissed on the ground [as expressed in paragraph 4 and 5 of the impugned consolidated appellate order dated 30.05.2016 of the Ld. CIT(A);] that the assessee has not complied with requirements under Section 194C(7) of I.T. Act. The relevant portion of the impugned consolidated appellate order dated 30.05.2016 is reproduced as under: 2. The dispute between the appellant and the Id. A.O. is fairly simple. There is no dispute on facts. Admittedly, the appellant has made payment to the transporters and has not deducted tax as was considered necessary by the Id. A.O. u/s. 194C of l.T. Act, 1961.The appellant has ta .....

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..... nterpretation more convenient to it. In view of this the reliance placed by the Id. A.O. on the Explanatory O.M. and not on the law is misplaced. There is no denying that the Legislature intended to mitigate the hardships face by a small transporters and not to grant an immunity from deducting tax at source to the transporters at large. But the drafting of sub-section 6 of section 194C failed to take care of the intent of the Legislature and created a situation where such an immunity got granted to every transporter irrespective of the size of its business. It was because of this that Finance Act, 2015 amended the provision of sub-section 6 of section 194C and removed the said deficiency w.e.f. 01/06/2015. In view of this the stand taken by .....

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..... dated 16.10.2014 issued by Income Tax Officer (TDS), Noida for verification of TDS for the financial year 2013-14 and 2014-15 4. Copy of letter dated 17.11.2014 filed before the Ld. AO alongwith the copy of Form 24Q and 26Q for the financial year 2013-14 and 2014-15 5. Copy of notice dated 23.02.2015 issued by the Income Tax Officer (TDS), Noida to furnish details of person and payment of freight and cartage / payment to transports. 6. Copy of letter dated 27.02.2015 filed before the Income Tax Officer (TDS), Noida in response to notice dated 23.02.2015 furnishing the details of payment of freight and cartage made to transport Operators by the appellant company for the financial year 2013-14. 7. Copy of letter dated 05.03.2015 filed before .....

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..... assessee had complied with requirements under Section 194C(7) of I.T. Act and further, that the relevant particulars were on the records of the Ld. CIT(A) and the AO; is contrary to the observation of the Ld. CIT(A) in paragraph 4 and 5 of the impugned consolidated appellate order dated 30.05.2016. In the words of Ld. CIT(A): … appellant appears not to have complied with the requirements of sub-section 7. The ld. A.O. though has not examined this issue specifically but the spirit of the law seems to have been complied with as the ld. A.O. has made enquiries about the status of the transporters and furnishing of PAN etc. by those transporters. 5. As the appellant has not complied with the requirement of sub section 7 of section 194C .....

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