2018 (12) TMI 1581

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.... of the Income Tax Act, 1961 (in short "the Act") dated 02.03.2015 for the Assessment Year 2009-10. 2. The only issue to be decided in this appeal is as to whether the ld. CIT(A) was justified in deleting the disallowance made in the sum of Rs. 1,17,40,659/-u/s 40a(ia) of the Act towards transportation charges , in the facts and circumstances of the case. 3. Brief facts of this issue are that the assessee is an individual engaged in the business of transport and steel processing. The assessee derives his income from his proprietorship business under name and style 'M/s Sunny Steel Processors' and 'Shree Balaji Road Lines'. The return of income for assessment year 2009-10 was filed by the assessee individual on 30.09.2009 declaring tot....

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....to various truck owners from Rampur Branch, the ld. AO observed that a sum of Rs. 18,28,018/- was paid without deduction of tax at source. The ld. AO also observed that the assessee has made payment of Rs. 4,99,332/- towards transportation charges to various truck owners without deduction of tax at source. Since no details were submitted on account of transportation of charges of Ghaziabad Branch in the sum of Rs. 36,58,879/-, the ld. AO assumed that the same was made without deduction of tax at source by the assessee in violation of section 194C of the Act. Accordingly, the ld. AO proposed to disallow the sum of Rs. 1,17,40,659/- (57,54,430 + 18,28,018 + 4,94,332 + 36,58,879) u/s 40a(ia) for payments made towards transportation charges ....

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....re made only to the truck drivers and that no oral or written contract was entered into with the truck owners could not be believed and not substantiated with any evidence. The ld. AR on the other hand reiterated his submissions before the lower authorities. He specifically drew our attention to the details of various payments made to truck drivers which are enclosed at para 4(a) and 4(b) of the paper book. We have gone through the same and we find that the assessee has made payment on account of transportation charges for transporting goods in same trucks on a frequent basis. From the details it could be observed that there is no dispute that the aggregate payments towards those individual trucks during the year had indeed exceeded Rs. 50,....