9911796707
TMI Blog2023 (5) TMI 33X X X X Extracts X X X X X X X X Extracts X X X X ..... Ld. Principal Commissioner of Income Tax (PCIT) erred in passing order u/s 263 of the Income Tax Act, 1961 (the Act), when the assessment for the impugned assessment year had already been concluded by Assessing officer (AO), u/s 143(3) of the Act, after seeking explanations and making all the enquiries necessary for the completion of assessment. Appellant prays order so passed u/s 263 may please be held as bad in law. 4) On the facts and in the circumstances of the case and in law, Ld. Principal Commissioner of Income Tax (PCIT) erred in passing order u/s 263 of the Income Tax Act, 1961 (the Act), on wrong PAN (PAN mentioned in 263 order is AAHFC1874F). Correct PAN is AAHFC1874H. Appellant prays order so passed u/s 263 may please be held as bad in law. 5) That the learned Principal Commissioner of Income-tax (PCIT) erred in law and on facts in issuing the 263 proceedings show cause notice dated 01.02.2021 on the ground that the appellant did not produce the declaration u/s 194(C)(6) from the Truck operators even though the provisions of the Act does not require the appellant to get such declaration for the period prior to 01.06.205 as amended in Finance Act, 2015. Relief may p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s a transport company operator and filed its return of income for the year under consideration on 26.09.2015 declaring income of Rs.82,980/-. The return was selected for scrutiny assessment and accordingly statutory notices were issued and served upon the assessee. The return income was assessed at Rs.1,32,980/- vide order dated 25.08.2017. 6. Assuming jurisdiction conferred upon him by the provision of Section 263 of the Act, the PCIT issued a show-cause notice to the assessee which reads as under: "Show Cause Notice u/s 263 of the Income Tax Act, 1961 Dated: ITR for AY 2015-16 was e-filed on 26.09.2015 declaring total income of Rs.82,980. Later on the case was selected for Limited scrutiny under CASS with reasons: "Mismatch in amount paid to related persons u/s 40A (2)(b) reported in Audit Report and ITR and Large other expenses claimed in the Profit & Loss a/c". The ITO, Ward-1(2), Meerut completed the assessment on total income of Rs. 1,32,980/-vide his order u/s 143(3) of the IT. Act, 1961 dated 25.08.2017. 2. From perusal of assessment record, for the year under consideration. it is observed that the assessee firm had debited sums amounting to Rs.3,84,37,105/- in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ined the PAN from the parties, he has complied with the provision of Section 194C (6) of the Act. The PCIT was not convinced with the contention of the assessee and was of the firm belief that since the assessee has not furnished the declaration as per the provision of Section 194C (7) of the Act, the AO should have invoked the provision of Section 40(a)(ia) of the Act and should have made the appropriate disallowances. 9. We find that during the course of the scrutiny assessment proceedings vide notice dated 20.01.2017, the AO had made a specific query at point no.13, which reads as under: "Give details of TDS made on interest/other payments ex: freight, rent, payments u/s 194C, 195J and 194H etc. is applicable and furnished the proof of depositing the same in the Central Govt." 10. Vide reply dated 11.08.2017, the assessee has specifically replied at point no.4 as under: "As far as non deduction of TDS on freight paid by us, it is submitted that the required declaration and PAN number have been obtained from the parties to whom the payments of freight were made." 10.1 Provision of Section 194C (6) read as under: "No deduction shall be made for any sum credited or paid or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in section 44AE of the Act) from the purview of TDS on furnishing of Permanent Account Number (PAN). Thus the intention was to reduce the compliance burden on the small transporters. However, the language of sub section (6) of section 194C of the Income tax Act did not convey the desired intention and as a result all transporters, irrespective of their size, were claiming exemption from TDS under the existing provisions o/sub section (6) of section 194C of the Income tax Act did not covey the desired intention and as a result all transporters, irrespective of their size, were claiming exemption from TDS under the existing provisions of sub section (6) of section 194C of the Income tax Act by furnishing their PAN." 11. From the above, we gathered that the payer is required to obtain PAN only from the payee for paying the charges without deduction of tax at source. In the present case, the assessee has obtained the PAN of the payees and has thus complied with the provision of Section 194C(6) of the Act as mentioned above. The AO had made specific enquires and after satisfying himself took a plausible view. In the case of Sunbeam Auto Ltd. [2011] 332 ITR 167 Hon'ble Delhi High Cou ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
