2018 (1) TMI 1187

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....ing to Rs. 2,87,765 made by Deputy Commissioner of Income Tax. 2. The learned Commissioner of Income Tax (Appeals) has erred in law and on facts in confirming the disallowance of freight of Rs. 3,26,199 made by Deputy Commissioner of Income Tax. As the assessee has not deducted TDS on freight payment of Rs. 3,26,199. 3. The learned Commissioner of Income Tax (Appeals) has erred in law and on facts in disregarding the decision of Jurisdictional Jaipur ITAT in the case of Jaipur Vidyut Vitran Nigam Limited vs. DCIT (2009) [123 TTJ (Jp) 888]. 4. The learned Commissioner of Income Tax (Appeals) has erred in law and on facts in disregarding the decision of Special Bench of Visakhapatnam Income Tax Appellate Tribunal in....

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....g the disallowance of freight of Rs. 3,26,100/-. The ld. CIT(A) has dealt both the issues by holding as under: "5.3 Decision During the assessment proceedings, the AO observed that no TDS was made from the interest paid to M/s Reliance Capital India amounting to Rs. 1,78,951/-, M/s Bajaj Auto Finance Ltd. amounting to Rs. 1,03,707/- and M/s G.E. Countrywide amounting to Rs. 5,107/-. The explanation given by the appellant in this regard was not found satisfactory by the AO. Thus, he invoked the provisions of section 40(a)(ia) and made addition of Rs. 2,87,765/- . The appellant has however submitted that the provisions of section 40(a) (ia) will be applicable only if the amount remains payable at the yearend. In thi....

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....lear evidence to support its claim that Reliance Capital is involved in Insurance business, this argument of the appellant is not acceptable. In view of the above factual and legal position, it is held that the AO has rightly invoked the provisions of section 40 (a) (ia) and thus, the addition of Rs. 2,87,765/- made on this account is hereby confirmed. This ground of appeal is dismissed. 5.6. Decision The AO had disallowed the amounts paid as freight. It has been explained that as per the provisions of section 194C, payments exceeding Rs. 20,000/- made to two transporters should have been subjected to TDS. As no tax was deducted on these payments, the AO has disallowed these expenses. In the written submission, th....