2015 (2) TMI 1187

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....onsidered to be reinstated on a subsequent non-compliance with the provisions of section 194C(7) of the Act, in view of the fact that both the sub-sections are falling under the same section 194C and are to be read harmoniously and are to be read together. 3. The Ld. CIT(A) failed to appreciate the fact that mere compliance to the provisions of the section 194C(6) do not absolve the assessee from discharging its onus to submit the PAN of the contractors obtained to the appropriate authority. 4. Ld. CIT(A) failed to appreciate the fact that the provisions of section 40(a)(ia) as per which the onus of assessee will be treated to have been discharged only when he deducts and remits tax to Government Account and on same analog....

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....AN of the transporters, there is no need to deduct any TDS as per provisions of the Act. Further, it was submitted that notification by the Board to whom the details are to be submitted in the form of statements was issued on 15.10.2010 applicable for F.Y. 2010-2011 i.e., A.Y. 2011-2012 and not to the impugned assessment year. 3.1. Ld. CIT(A) accepting the contention of assessee discussed the issue elaborately and held as under : "4.5 I have considered the facts on record and the submissions of the AR. Sec.40(a)(ia) applies when 'tax is deductible at source' from any payment made by an assessee. Whether or not the tax was deductible at source from the payment made to the transporters is to be discerned from sec.194C. ....

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....C(6). The Assessing Officer has observed that sec.194C(6) applies only to those transport operators to whom sec.44AE applies, that the three transporters in question did not own any trucks, that the number of trucks engaged by them on hire was more than ten and that for both these reasons, sec.44AE did not apply to them. 4.9 Sec.194C(6) refers merely to payments to 'a contactor during the course of business of plying, hiring or leasing goods carriage'. There is no reference to sec.44AE in sec.194C(6) itself. The reference to sec.44AE has been made in Explanation (ii) to sec.194C which merely defines the term 'goods carriage' with reference to Explanation (a) of sec.44AE. The mere fact that the meaning assigned to th....