2020 (4) TMI 22

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....IT(A). 3. The assessee is an individual and proprietor of M/s Deepak Sales Agency and was engaged in wholesale business of PVC pipes and stationery item, for which regular books of accounts were maintained by the assessee. The assessee filed return of income on 19/02/2009 declaring an income of Rs. 2,01,374/-. The Assessing Officer completed the assessment on an income of Rs. 3,79,930/-, vide order dated 22/11/2011, passed under section 143(3) of the Income Tax Act.   4. Thereafter, proceedings under section 263 of the Act were initiated, on the ground that on the freight paid during the year, amounting to Rs. 9,32,378/- (8,09,896/- + 1,71,216/-), TDS was not deducted and the same should be disallowed under section 40(a)(ia) of t....

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....han Company, amounting to Rs. 8,09,896/- and Rs. 1,71,216/-, totaling to Rs. 9,32,378/-; that during the assessment proceedings, the assessee had furnished the details of transporters, namely Thangagaji Golden Transporter and Shiv Shakti Associates, their PAN number, service tax registration number, confirmation from the transporters that they are income tax assessee, having PAN number; that there was no contractual agreement between the assessee and the transporters; and that moreover, the assessee had made payment as per bills issued by the suppliers and since there was no expressed or implied contract between the assessee and the transporters, the assessee was not liable to deduct TDS under section 194C of the Act. After considering the ....

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....tor or sub-contractor, being resident, for carrying out any work (including supply of labour for carrying out any work), on which tax is deductible at source under Chapter XVII-B and such tax has not been deducted or, after deduction, has not been paid on or before the due date specified in sub-section (1) of section 139 of the Act. But, in the present case, as contended by the assessee, there was no contractual agreement between the assessee and the transporters, therefore, the case of the assessee is not covered under section 40(a)(ia) of the Act. 10. Section 201 of the Act provides that where any person, including the principal officer of a company or an employer, who is required to deduct tax at source on any sum, in accordance with ....