TaxTMI 
TaxTMI 
2019 (11) TMI 1340
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....sessment proceedings completed under section 143(3) read with section 147 of the Income Tax Act, 1961 (in short the Act) as well as additions made in reassessment proceeding. 3. Briefly stated, facts of the case are that the assessee is a government contractor and filed return of income on 30/09/2009 declaring total income of Rs. 26,79,270/-. The assessment under section 143(3) of the Act was completed on 20/09/2011 after making addition of Rs. 2,00,000/- to the returned income. Subsequently, the Assessing Officer recorded reasons on 01/03/2013 that income of the assessee had escaped assessment and issued notice under section 148 of the Act. The reassessment proceedings in the case were completed on 21/03/2014, wherein following addition....
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....or reopening of the assessment. The Ld. counsel submitted that in the case of the assessee, no addition can be sustained if the Ld. CIT(A) has deleted the addition, on the basis of which the assessment was reopened, relying on the decision dated 28.07.2011of the Hon'ble Delhi High Court in the case of CIT Vs Adhunik Niryat Ispat Ltd in IT Appeal No. 2090 of 2010, wherein it is held that when the grounds for reopening the reassessment do not exist any longer and no additions were ultimately made on that account, the addition in respect of the other items, which were not part of the " reasons to believe" cannot be made. 5. The Ld. DR on the other hand, relied on the order of the lower authorities. 6. We have heard the rival submission a....
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.... covered u/s. 194C Income Tax Act. The assessee should have deducted tax at source on the above freight payment but has failed to do so. The assessee may take the plea that these payments of freight are included in the cost of goods and the seller have given delivery of goods on FOR basis, but when the cost of freight has been mentioned in the bills separately, it clearly indicates that the work has been executed on part of the purchaser. Explanation (iv)(c) to section 194C of the Act defines the work which include carriage of goods. In these circumstances the seller has executed work and received the freight payments whether they issued composite bill showing the cost of freight in the bill or otherwise. In these circumstances the seller h....
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....that income of Rs. 6,39,382/- chargeable to tax has escaped assessment for the A.Y. 2009-10 and also any other income chargeable to tax which has escaped assessment and which comes to the notice of the A.O. subsequently in the course of the proceedings under this section. Issue notice under section 148 of the Income Tax Act, 1961." 8. We find that in the reasons recorded, the Assessing Officer has expressed escapement of the income of Rs. 6,39,382/- on following items: 1. non-deduction of tax at source on u/s 194C for freight payment of Rs. 1,33,600/- paid to Haryana Concrete 2. non-deduction of tax at source u/s 194C on payment of Rs. 1,56,660/- to Ashok Crane Works for crane charges 3. non-deduction ....
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..... 5,90,452/-) and disallowed the same under section 40a(ia). The AO stated that the same has been accepted by the appellant in his reply dated 05.02.2014. 6.2 In its written submission, the appellant has stated as under: "As per para no. 3.3 the Ld. ACIT has held that the assessee has failed to prove that some payments have been made to casual workers directly. He has further held that the records submitted by the assessee clearly shows that a few names are repeated again and again which lead him to decide that those are labour contractor until assessee proves otherwise. The Ld. ACIT has further stated that the assessee should have deducted TDS on every payable amount before making payment therefore disallowance of Rs. 9,9....
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....or was engaged for this purpose. Moreover such payment never exceeds Rs. 50000.00 to a single labour throughout the year therefore there was no liability to deduct TDS. The same may kindly be deleted sir. " 6.3 I have carefully examined the facts of the case. The aforesaid payments for crane charges and Boki charges are on account of wages and labour. The appellant, being a labour contractor has made payments to labour in cash and all payments are below Rs. 20,000/-. According to the appellant, as these payments are to labours and related to labour contract, it does not attract provision for deduction of TDS. As some of the labourers are engaged continuously, names of few labourers appear in the ledger repetitively. However, as pay....