2022 (1) TMI 1098

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....s and has been a government contractor. Whenever payments were made, various government departments deducted TDS at 2% and the same was reflected in 26AS. For the assessment year 2014-15 the assessee filed the return of income on 25/9/2014 declaring a total income of Rs. 58,42,890/-. 3. During the assessment proceedings, learned Assessing Officer found that the assessee debited a large expenses in his profit & loss account and also that in respect of payments made to certain parties under the head taxi hire charges. Learned Assessing Officer found that the assessee being the main contractor having receipts above the prescribed limit as per the provisions of section 44AB of the Income Tax Act, 1961 (for short "the Act"), is liable to deduct....

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....ssessee produced the certificate from the Chartered Accountant under the 1st proviso to subsection (1) of section 201 of the Act, no addition can be made on that account. 6. In so far as the disallowance of part of the expenses is concerned, assessee contended that their accounts are audited and nothing discrepancy was found and therefore, no such disallowance should have been made. 7. Ld. CIT(A) considered the contentions of the assessee in the light of the decisions reported in CIT vs. Marikumba Transport Company (2015) 379 ITR 129, ACIT vs. Malamud Suhail in ITA No. 1536/HYD/2014 and Soma Rani Ghosh vs. DCIT (2016) 48 CCH 59 by the Kolkata Bench of Tribunal and granted relief to the assessee in respect of the disallowance under section....

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....gone through the reasoning given by the Ld. CIT(A) on this aspect. We have also noticed the amendment made to section 194C(6) vis-à-vis. the pre-amended provision. Insofar as the provision applies to the assessment year 2014-15, it requires the contractor to obtain the PAN details of the transport suppliers and after obtaining the PAN there is no need to deduct any TDS under section 194C, whereas w.e.f. 1/6/2015 the transport suppliers shall also furnish a declaration that he owns less than 10 carriages at any time during the financial year relevant to the assessment year. Further the provision as applicable up to 31/5/2015 does not bar the exemption to small or large transport operators and is only w.e.f. 1/6/2015, it was made appli....

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....enses on the ground that the assessee failed to produce the supporting evidences/bills and vouchers in support of this claim. Ld. CIT(A) took note of the fact that the books of accounts of the assessee are audited and tax audit was also done and the books of accounts were produced before the assessing officer. Ld. CIT(A) observed that the assessee does not dispute the fact of not producing the supporting evidence. Ld. CIT(A), therefore, found that the ad hoc disallowance of such vehicle running expenditure was justified, but while considering the nature of business of the assessee and also the fact that the books of accounts of the assessee were audited and produced, Ld. CIT(A) thought it fit to restrict the disallowance to Rs. 5 Lacs. 14.....