https://www.taxtmi.com/caselaws?id=765323 ITAT Mumbai ruled in favor of assessee regarding TDS disallowance under Section 40(a)(ia) for freight, diesel and fuel expenses. The tribunal held that AO failed to establish existence of contracts between assessee and truck owners, as trucks were hired from market at prevailing rates without formal agreements. Even assuming oral contracts existed, payments to individual trucks did not exceed threshold limits under Section 194C. Consequently, TDS provisions were inapplicable and disallowances were deleted. However, tribunal upheld 15% disallowance of truck repair expenses due to non-production of supporting bills and vouchers. Appeal was partly allowed. en-us Thu, 01 Aug 2024 00:00:00 +0530 Thu, 30 Jan 2025 08:24:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=765323 ITAT Mumbai ruled in favor of assessee regarding TDS disallowance under Section 40(a)(ia) for freight, diesel and fuel expenses. The tribunal held that AO failed to establish existence of contracts between assessee and truck owners, as trucks were hired from market at prevailing rates without formal agreements. Even assuming oral contracts existed, payments to individual trucks did not exceed threshold limits under Section 194C. Consequently, TDS provisions were inapplicable and disallowances were deleted. However, tribunal upheld 15% disallowance of truck repair expenses due to non-production of supporting bills and vouchers. Appeal was partly allowed. Case-Laws Income Tax Thu, 01 Aug 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=765323