TMI Blog2008 (5) TMI 142X X X X Extracts X X X X X X X X Extracts X X X X ..... . Sanjeev Kaushik, Advocate for the appellant-revenue. JUDGMENT The judgment of the court was delivered by Rakesh Kumar Garg, J. - The revenue has filed the present appeal under Section 260-A of the Income Tax Act, 1961 (hereinafter referred to as the 'Act') against the order dated 26.12.2006 passed by the Income Tax Appellate Tribunal, Delhi Bench "I" New Delhi in TDS No.127/Del/2004 and has sought to raise the following substantial questions of law:- "Whether on the facts and in the circumstances of the case, the Ld. ITAT was right in law in upholding the order of the CIT(A), deleting the demand created by the Assessing Officer under Section 201(1) and 201(1A) of the Income-tax Act, 1961, as the assessee failed to deduct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st West Cargo Movers on behalf of the assessee, and the assessee in turn reimbursed the amount of M/s East West Cargo Movers. In each case, the payment was less than Rs.20,000/-. During the course of assessment under Section 143 (3)of the Act, separate GR/Bills/documents were obtained showing therein the weight amount destination truck number etc. each GR value i.e. transportation charges to Kandla Port were of the value less than Rs.20,000/- each and that the assessee should have deducted tax at source on the amount paid to M/s East West Cargo Movers. The Assessing Officer also found that similar payment has been made by the assessee to another clearing and forwarding agent, namely, Leeladhar Pasoo Forwarders (P) Ltd. and to some of the t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the orders of the authorities below and also material placed on record. As per provisions of Section 194C any person responsible for paying any sum to any resident for carrying out any work in pursuance of a contract shall at the time of credit of such sum or at the time of payment thereof in cash or by cheque deduct a tax thereon at prescribed rate. However, no deduction of tax at source is required to be made, if the sum paid or credited do not exceed rupees twenty thousand. In the instant case payment of transportation charges paid to truck owners/forwarding agents were considered by the Assessing Officer as liable for deduction of tax at source. This decision of Assessing Officer was based on question and answers No.6, 9 and 30 of CBDT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng that goods reached to them in full quantity. Thus, the assessee was just reimbursing what these parties have paid as per the instructions of the assessee and on its behalf. But in no case single payment to one truck owner/operator was exceeding Rs.20,000/-. Even as per question No.6 of Circular No.715, CBDT dated 8.8.1995, the pre-requisite condition for deduction of tax is that there must be contract for carriage of goods. Thus, the payment made to these C F agents has to be seen in the light of question No.6 itself. Tax was required to be deducted from the payments made to these C F agents for carriage of goods if there is a contract for carriage of goods. Similarly, even as per question No.9 of Circular No.715 of CBDT., and its re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e parties through whom trucks were arranged for transportation of goods. However, the CIT(A) has recorded a finding of fact that there was neither any oral or written agreement between the assessee or transporters for carriage of goods nor it has been proved that any sum of money regarding freight charges was paid to them in pursuance of a contract for specific period, quantity or price. This finding of fact was recorded by the CIT(A) after considering the certificate furnished by the transporters. The Tribunal has also recorded a finding of fact that the Department has not controverted the said finding of the CIT(A) even before the Tribunal. While recording this finding of fact, the Tribunal has clearly stated that nothing has been brought ..... X X X X Extracts X X X X X X X X Extracts X X X X
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