TaxTMI 
TaxTMI 
2018 (10) TMI 714
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.... concerning A.Y. 2012-13. 2. In the captioned appeal the assessee has challenged the action of the CIT(A) in confirming the disallowance of Rs. 5,52,562/- under section 40(a)(ia) on the ground that the assessee has not furnished the particulars of all payees/contractors in the prescribed form to the prescribed authority in time. 3. Briefly stated, the assessee is a dealer in Suiting & Shirting. The assessee in the course of carrying on its business incurred certain freight and transportation charges which includes an amount of Rs. 5,52,562/- where it is found by the Assessing Officer that the assessee has failed to deduct tax at source as contemplated under section 194C of the Act. He accordingly invoked provisions of section 40(a)(ia....
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....rescribed authority albeit late. We find that identical issue came up for adjudication in ITO vs. M/s. Globe Cargo Services in ITA No.434/RJT/2011, order dated 01.05.2018, the operative paragraphs of the aforesaid order is self explanatory and, therefore, reproduced hereunder for reference: "7. On careful consideration of the process of reasoning recorded by the CIT(A), we do not see any fallacy in the conclusion drawn by the First Appellate Authority. It is inter alia observed that the requisite Form No.15-I declaration for non-deduction from the transporters, to whom total payments of Rs. 40,73,960/- made, were filed in the course of assessment proceedings. This aspect remains uncontroverted. This ground alone is sufficient for n....
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....er deduction, [has not been paid.... (only relevant portion extracted). " The provision noted above spells out that the amount cannot be allowed as deduction only in the event when tax is deductible at source under Chapter XVII-B and such tax has not been deducted or, after deduction has not been paid. In the present case, it is the case of the assessing officer that the assessee was required to deduct tax in terms of the provisions of section 194A. We note that Section 194A is further qualified by section 197A(1A) which is a non-obstante clause. Setionl97A(lA) provides that liability to deduct tax under section 194A ceases when a declaration in writing in duplicate in prescribed form and verified in the prescribed manner.....
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....and accordingly, section 40(a)(ia) of the Act is not applicable in the facts of the case, Thus, assessee succeeds on this score also." 8. In parity, we find the conclusion drawn by the CIT(A) for non-applicability of provisions of section 40(a)(ia) in the facts of the case are on a sound legal footing ad thus require no interference therewith. We thus endorse the action of the CIT(A) in toto and decline to interfere. We thus do not consider it expedient to examine other line of arguments advanced on behalf of assessee. 9. In the result, appeal of the Revenue is dismissed." 7. In view of the uncontroverted fact that requisite return in the prescribed form was ultimately filed albeit belatedly, the assessee could not have....