Tribunal allows appeal, condones delay, deletes non-deduction for TDS under section 194C.

The Tribunal allowed the appeal, condoning the delay in filing and deleting the addition for non-deduction of TDS under section 194C.

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Issues:
1. Condonation of delay in filing the appeal.
2. Addition for non-deduction of TDS under section 194C.

Condonation of Delay:
The appeal filed by the assessee was delayed by 275 days, seeking condonation due to the counsel's illness. The counsel fell ill and had a heart attack, leading to the delay. The Department opposed, citing precedents where delay condonation was denied. The assessee provided the doctor's prescription as evidence of illness. The Tribunal, considering the Supreme Court's decision, allowed the delay condonation, admitting the appeal for hearing.

Non-Deduction of TDS under Section 194C:
The Assessing Officer disallowed a deduction of Rs. 18,00,100 for non-deduction of TDS under section 194C. The CIT(A) upheld this decision, as payments exceeding Rs. 50,000 to truck owners were made without TDS deduction. The assessee contended that being an intermediary, no TDS was required. Citing relevant case laws, the AR argued against the disallowance. The Tribunal noted the privity of contract between the parties and the truck owners, deleting the addition and allowing the appeal.

In conclusion, the Tribunal allowed the appeal, condoning the delay in filing and deleting the addition for non-deduction of TDS under section 194C.

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