TaxTMI 
TaxTMI 
TaxTMI 
2015 (3) TMI 636
X X X X Extracts X X X X
X X X X Extracts X X X X
....y the Assessing Officer on account of 'Receipts not shown by the assessee, without appreciating the facts brought on record by the Assessing Officer during the course of assessment proceedings. 2. On facts and in circumstances of the case the learned Commissioner of Income Tax (Appeals)-II, Kanpur erred in law and on facts in deleting the addition of Rs. 22,69,756/- made by the Assessing Officer on account of 'Nondeduction of TDS on payments made to various parties', without appreciating the facts brought on record by the Assessing Officer during the course of assessment proceedings. 3. That the order of the learned Commissioner of Income Tax (Appeals)-II, Kanpur dated 20/06/2011 needs to be quashed and the order passed by the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....has been accepted in the assessment. I have also seen the books of accounts maintained by the appellant. The receipt of freight by the appellant has been credited in respective tanker accounts and in the accounts of the parties who has made payment to the appellant. Such freight amount was payable to the tanker owners and the same was paid from time to time. The only basis adopted by the Assessing Officer in making an addition of Rs. 24,63,336/- is TD5 certificates issued by the parties in the names of the appellant on account of payments of freight made directly to the drivers of the tanker owners or to the appellant firm. The Assessing Officer has assessed the entire gross receipt as income of the appellant. Even the element of any deduct....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... such the amount of Rs. 22,69,756/- was not allowable as deduction under the provisions of section 40a(ia). The list of such tanker owners are given at page 8 of the asstt. order. I also find from the records that the Assessing Officer made enquiry u/s 133 (6) of the Act from various owners of the tankers engaged by the appellant. All the parties had filed their replies confirming that the appellant firm was doing business of commission agency in transportation work and their vehicles were engaged in such business. All the parties confirmed their balances outstanding in the books of the appellant. Further, the verifications u/s 133(6) have also been done by the Assessing Officer during the course of assessment proceedings. Now the question ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....y the assessee in its books of account. On page No. 4 to 7 of the assessment order, the Assessing Officer has reproduced a chart containing details of TDS certificates, amount of freight payment to the assessee and the corresponding amount credited by the assessee and freight short credited in the books of the assessee. The Assessing Officer came to a total of Rs. 24,63,336/- as freight short credited in the books of the assessee. As per the same chart, the total of column with the heading 'amount of freight credited in the books, comes to Rs. 14,21,742/-. The Assessing Officer is also saying that the assessee has made payment of freight without TDS of Rs. 22,69,756/-. We fail to understand that when the assessee has accounted for the freig....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... not incurred by the assessee but by the tanker owners. No such fact has been brought on record by the Assessing Officer that the assessee was in fact not working as commission agent but as a transport operator. Hence, even if the receipts as per TDS certificate are to be considered as income of the assessee then the payment made by the assessee has to be allowed as expenses and it will not result in addition in the hands of the assessee. 6. Regarding the second aspect i.e. disallowance of Rs. 22,69,756/- on the basis that no TDS was deducted by the assessee, we find that the judgment of Hon'ble Delhi High Court rendered in the case of Hardarshan Singh (supra) supports the case of the assessee. In that case also, the assessee was engag....