Appeal delay excused for medical reasons; disallowance under section 40(a)(ia) deleted based on precedent.

The delay in appeal filing was condoned due to medical reasons, and the appeal was heard on merit. The disallowance under section 40(a)(ia) for payments to truck owners without a formal agreement was deleted based on a precedent from the Kolkata Bench of the Tribunal. The Tribunal held that TDS provisions should apply to amounts payable, not already paid, and deleted the addition, allowing the appeal.

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Issues:
1. Delayed appeal filing with medical reasons.
2. Disallowance under section 40(a)(ia) for payments to truck owners.
3. Application of TDS provisions and deletion of addition.

Detailed Analysis:
1. The appeal was delayed by 24 days due to medical reasons, and the assessee filed an affidavit for condonation of delay. The delay was condoned, and the appeal was heard on merit.

2. The main issue was the disallowance under section 40(a)(ia) for payments made to truck owners without a formal agreement or contract. The authorized representative argued that the case was similar to a decision by the Kolkata Bench of the Tribunal, where it was held that section 194C was not applicable as there was no contractual obligation assigned to the truck owners. The Departmental representative supported the Assessing Officer's decision, but the Tribunal, following the Kolkata Bench decision, deleted the disallowance.

3. The Assessing Officer disallowed the payments for hiring trucks due to non-deduction of TDS under section 40(a)(ia). However, the Tribunal, relying on previous decisions, including a Special Bench decision, held that since no amount was payable at the end of the year to the truck owners, the disallowance was not justified. The Tribunal also referred to a decision by the Delhi Bench and the Allahabad High Court, emphasizing that TDS provisions should apply to amounts payable, not already paid. Consequently, the addition was deleted, and the appeal was allowed.

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