9911796707
TMI Blog2024 (7) TMI 1640X X X X Extracts X X X X X X X X Extracts X X X X ..... a return of income declaring a total income of Rs. 2,01,14,710/-. The return was selected for scrutiny and a notice under Section 143(2) of the Income Tax Act (hereinafter referred to as "the IT Act") was issued on 05.09.2014. Subsequently, a notice under Section 142(1) read with Section 129 of the IT Act was also served on the assessee. The assessment proceedings thereafter culminated in Annexure A order dated 30.03.2016, whereby the Assessing Officer made two disallowances, namely, (1) Under Section 40(a)(ia) of the Act, and (2) Under Section 36(1)(va). 2. The disallowance under Section 40(a)(ia) was essentially on the ground that the assessee, who was obliged to deduct tax at source under Section 194C of the IT Act on payments made to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee were to contractors, who were engaged in the business of plying, hiring or leasing of goods carriages. The Tribunal, therefore, remanded the matter to the assessing authority for a fresh consideration of the issue based on the declarations/contracts to be produced by the assessee. 4. In the appeal before us, the argument of the learned counsel for the appellant assessee is that the assessing authority had no case that the declarations that were required for claiming exemption in terms of Section 194C(6) had not been produced before it in support of the claim for exemption. The assessing authority had merely stated, for no apparent reason, that the payments made by the appellant assessee were only to agents of transporting contrac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions that were produced before him (the production of which was never denied by him) and given reasons as to why those declarations could not be accepted on their face value. In the absence of such a finding by the assessing authority, his finding that the payments were made only to agents had to be seen as wholly without any basis, and against the documents made available before him. To that extent, we find that the First Appellate Authority, who had perused the declarations and found them to be genuine arrived at a correct decision by deleting the disallwance made by the assessing authority under Section 40(a)(ia). We also believe that in the light of the facts before us, the Appellate Tribunal was not justified in remanding the matter to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he employees' contribution to EPF/ESI was not made over by the employer to the statutory authorities within the due date prescribed for making those payments under the respective statutes, the disallowance under Section 36(1)(va) would operate against the erring employer assessee. It accordingly proceeded to hold that in the instant case also the disallowance made by the assessing authority had to be restored. We see no reason to interfere with the finding of the Tribunal in relation to the disallowance under Section 36(1)(va) since, as already noticed, it is based on the judgments of this Court referred above, that settle the issue. 8. In the IT Appeal before us, the appellant has raised the following questions of law: (1) Did not t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
