2016 (8) TMI 596

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....ing rival contentions, I condone the delay and admit the appeal. 3. The assessee, in this case is a partnership firm and is in the business of transportation of coal as a contractor. It filed its return of income for the A.Y. 2009- 2010 on 21.10.2010, admitting total income of Rs. 14,53,190. The A.O. completed the assessment under section 143(3) on 22.12.2011. The Ld. CIT, Vijayawada passed an order under section 263 of the Act, setting aside the assessment and directing the A.O. to re-do the assessment de-novo on the matter specified in para- 2(a)(b)(c) which reads as follows : "2. On examination of the above proceedings and connected record, it is seen that the A.O. has not conducted due probe (enquiries) on various issues, of which....

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.... I hold as follows. 4.1. The first issue on which the revision was directed by the Ld. CIT was that the A.O. had failed to invoke section 40(a)(ia) of the Act on freight charges paid by the assessee to 20 vehicles without deducting tax at source. The assessee relies on the following case laws and submits that there is no requirement of deducting tax at source under section 194C, when there is no written contract between the truck owners and the assessee. i. CIT-I vs. Valibhai Khanbhai Mankat (2013) 216 Taxmann 18 (Guj.) ii. Chandrakant Thackar vs. ACIT (2010) 129 TTJ 1 (ITAT - Cuttack Bench) iii. ITO vs. Bhoruka Roadlines Ltd., 115 TTJ 383 (Mum.) iv. City Transport Corporation vs. ITO 13 SOT 47 (Mum.) 4.2. It is the case o....

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....red by way of account payee cheques and were verified during the assessment proceedings by the A.O. and hence the grievance cannot be doubted. He argued that there is neither error in the assessment order nor prejudice was caused to the revenue and hence, revision on this ground is bad in law. 6. On the third issue of unmatched financial charges, the Ld. Counsel for the assessee, explained that the loan liability of the assessee is taken on a gross figure (i.e., Principal + Interest) and the contra entry of interest amount is shown on the assets side of the assessee's balance sheet and is disclosed as unmatched financial charges. The interest charged during the year is reduced both from the unmatched financial charges and the loan accoun....