AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2022 (6) TMI 731
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....by not granting the credit of IDS of Rs. 1,90,76,546/- (duly reflected in Form no. 26AS) by stating that the assessee had not offered the freight receipts as income for the relevant year under consideration ignoring the fact that the assessee had shown the net of the Gross receipts of the Freight services against the disbursements to the Ex-servicemen truck owners in its audited books of accounts, and thus have fulfilled the requirements as specified in the provisions of Section 199 read with Rule 37BA of The Income Tax Act 1961". 2. The ld. AR inviting attention to the respective orders of the tax authorities referring to assessment order page 2 para 4 submitted that the assessee is incorporated under the Himachal Pradesh Ex-servicemen Co....
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....e impugned order itself (specific attention page 3) which have remained ignored. In the circumstances, it was his limited prayer that the issue may be remanded back to the file of the CIT(A) allowing the assessee to place the necessary facts on record. 4. The ld. DR considering the submissions extracted in the order and the facts agreed that the matter may be remanded back. 5. We have heard the rival submissions and perused the material available on record. A perusal of the record shows that the assessee corporation has came into existence Vide Act "The Himachal Pradesh Ex-servicemen Corporation Act, 1979" (as amended vide amendment and validation Act, 1984) with the main objective to provide the welfare and economic uplift of ex-servicem....
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....d for trucks, billing system and collection and payment of freight to truck operators and acted as facilitator. The cement company followed the TDS provisions and deducted the TDS on freight on Corporation PAN and being Corporation is exempt u/s. 10(26BBB) of The Income Tax Act 1961, gets refund of TDS, which is in actual component of freight of truck operators and distribute the same among the Truck Operators. The main business of the Corporation is to carry the cement through trucks from the locations of the clients to different places in India. The Corporation did not own any trucks. Therefore, to provide gain full employment to truck owners i.e. members (Ex-Servicemen) of the corporation, it deployed their trucks for carriage of cement ....
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....t received in respect of the transportation charges including the tax deducted at source are paid to the truck operators. The corporation is collecting some commission as per charges in case of cement load. The commission/parchee amount are deducted for meeting the administrative expenses of the corporation. The corporation was created for the sole purpose of obtaining contract from ACC Ltd., Ambuja Cements Ltd. and JP Cements Limited it is clear that the amount of freight received by the corporation has been paid to the truck owners. The amount of TDS deducted by the ACC Ltd. is also paid to the truck operators after receipt of the same from the IT. Department. 5.2. However, the claim was denied holding as under: "7. In the profit and l....
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....s such the credit of TDS is not allowed." 6.1) I have gone through the facts of the case and the submissions of the appellant. The Appellant's grievance is that its claim for grant of credit of TDS was not considered u/s. 199 of the Act. In course of appellate proceedings the AR submitted the details of the freight receipts received from various parties of Rs. 95,15,45,598/- (as per books), as per 26AS it is Rs. 95,25,03,412/- and on this amount, TDS of Rs. 1,90,76,546/- was deducted. The contention of the appellant for granting TDS cannot be accepted since it had not offered the freight receipts as income for the year under consideration. The taxation rates for normal income and TDS deductions vary a lot. Further, the judicial decisi....
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....red by the Corporation and commission income from the said hiring activity was the income received by the Corporation only. However, since trucks have been engaged through the assessee by ACC Ltd. etc., the TDS deducted etc. payments by the ACC Ltd. were paid to the truck owners through the assessee, pleadings to this effect, we have noticed have been extracted in the respective orders, however, while passing the order, the AO, we find, has been guided by the fact that credit of TDS of freight receipts cannot be allowed as no freight receipts have been disclosed. Similarly, the ld. Commissioner is also influenced by this fact has confirmed the order. It is a fact that the freight receipts are not offered as income of the assessee as the inc....