TMI Blog2021 (4) TMI 381X X X X Extracts X X X X X X X X Extracts X X X X ..... plier but the payment was made by the assessee in her books accounts. Thus it can be inferred that there was no contract between the assessee and the transporters and accordingly the provisions of section 194C of the Act cannot be invoked in the case on hand - See M/S. PRAMUKH JUTE TRADERS VERSUS ITO [ 2009 (9) TMI 981 - ITAT AHMEDABAD] . There cannot be any disallowance of the expenses in the given facts and circumstances on account of non-deduction of TDS. Likewise, the judgments referred by the learned DR at the time of hearing are distinguishable from the facts of the present case. Accordingly we are reluctant to rely the same. Hence the ground of appeal of the assessee is allowed. - ITA No. 1177/AHD/2018 - - - Dated:- 23-3-2021 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d there is any no Oral or Written Contract between them for transportation of Goods. Appellant is not liable to deduct TDS on Fright Expenses as Section 94C of Income tax Act can't be applicable and Addition made of ₹ 13,82,900/- u/s. 40[a](ia) of Income tax Act should be deleted. 5. The appellant reserves, craves leave all these to Hon'ble Commissioner to add, alter, amend, delete, modify, vary, and/or rescind any of the facts/grounds hereafter, if necessary, in the interest of justice. 3. The only issue raised by the assessee is that the learned CIT(A) erred in confirming the disallowance made by the AO for ₹ 13,82,900/- on account of non-deduction of TDS under section 194C of the Act. 4. The facts in brie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onfirmed the order of the AO. 8. Being aggrieved by the order of the learned CIT(A) the assessee is in appeal before us. 9. The learned AR before us contended that there was no contract between the assessee and the transport contractor. Therefore the same outside the purview of the TDS. 10. On the other hand the learned DR before us filed the WS which is available on record and vehemently supported the order of the authorities below. 11. We have heard the rival contentions of both the parties and perused the materials available on record. Admittedly the assessee is buying the pineapples from different states which are brought to the state of Gujarat. Such goods cannot be transported by the assessee without incurring the transpor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ortation expenses incurred by the assessee are in pursuance to the contract as envisaged under the provisions of section 194C of the Act. In the case on hand, on perusal of the truck numbers to whom the assessee has made payment for the transportation expenses, we find that all of those numbers are registered with the state of Kerala from where the assessee is transporting the goods. Thus it can be inferred that all these transporters were engaged by the supplier but the payment was made by the assessee in her books accounts. Thus it can be inferred that there was no contract between the assessee and the transporters and accordingly the provisions of section 194C of the Act cannot be invoked in the case on hand. In holding so we draw suppor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as any contract for transport between the assessee and the transporters. These the single trips. Circular No. 715 dated 8-8-1995 issued by the CBDT shows that each goods receipt can be considered to be a separate contract if the goods are transported at one time. This requirement is satisfied as can be seen from the bills issued by the transporters. The order of the Mumbai Bench of the Tribunal in City Transport Corporation Vs. ITO dated 12-9-2006 in ITA Nos. 7708 to 7711/Mum/2003 (copy placed at page 46 of the paper book) and the judgment of the Punjab and Haryana High Court in CIT Vs. United Rice Land Limited dated 12-45-2008 in IT Appeal No. 638 of 2007 (copy filed at page 41 of the paper book) support the assessee's case. In these c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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