2021 (4) TMI 381

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....sessment Year 2008-2009. 2. The assessee has raised the following grounds of appeal: The Hon'ble CIT(A)-10 ahmedabad has erred in law in; 1. Passing the Appellant Order u/s. 143f of the IT Act for the A.Y. 2008-09 and confirming demand of Rs. 6,12,030/- raised by the Lrd. AO. 2. That addition of Rs. 13,82,900/- made u/s. 40(a)(ia) of Income tax Act on account of non deduction tds on Fright Exp. However, the said addition by factually as well as legally does not fall in ambit of Section of 194C of Income tax Act. Lrd. AO has wrongly applied section 194C & 40(a)(ia) of Income tax act without applying mind and raise huge demand thereon. 3. Calculating total assessed Income of Rs. 15,54,490/- and tax liability of Rs. 6,12,030/- wit....

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....rred by the supplier who used to raised the bills for the transport expenses along with the sales bills raised to the assessee. Accordingly, the assessee contended that such transportation expenses are part of the purchases and therefore the same are outside the purview of the provisions of TDS. 7. However the learned CIT(A) disagreed with the contention of the assessee by observing that the assessee has not brought any iota of evidence on record suggesting that the supplier was to incur the transportation expenses which used to be reimbursed to the supplier along with the bill raised by such supplier. 7.1. The learned CIT(A) further found that had the transportation expenses been the part of the purchases, then the assessee would not hav....

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....or carrying out any work (including supply of labour for carrying out any work) in pursuance of a contract between the contractor and a specified person shall, at the time of credit of such sum to the account of the contractor or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct an amount equal to-- (i) one per cent where the payment is being made or credit is being given to an individual or a Hindu undivided family; (ii) two per cent where the payment is being made or credit is being given to a person other than an individual or a Hindu undivided family, of such sum as income-tax on income comprised therein. 11.2. The above provision requires the assessee to de....

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....n is correct. At page 9 of the paper book the assessee has placed a copy of the account of Bharat Roadlines for the period ended 31-3-2005 which shows that there was four payments aggregating to Rs. 1,27,408/-. The bills of Bharat Roadlines placed pages 11 to 15 of the paper book show the names of the jute mills in Calcutta from where the jute goods were transported. From these bills it appears to us that it was the jute mills which engaged the transporters through agents in Calcutta and the assessee was required to pay the transport charges. The material on record does not show the existence of any transport contract between the assessee and the transporters. The same is the case with Roadco (India) Corporation, Calcutta to whom the assess....