2023 (9) TMI 29

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.... the ground that the assessee was not given adequate opportunity before the first appellate authority, thereby violating the principles of natural justice and had also challenged the disallowance of transport charges of Rs. 2,70,048/- for non deduction of TDS u/s. 194C of the Act. 3. The brief facts are that the assessee is engaged in the business of stainless steel utensils, household products and appliances to buyers within and outside India as a proprietary concern by the name and style M/s. Surya Impex. The assessee had filed his return of income dated 22.09.2010, declaring total income at Rs. 11,24,290/- and the same was processed u/s. 143(1) of the Act. The assessee's case was selected for scrutiny and the assessment order dated 28....

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....d loss account towards transport charges to M/s. Sharma Transport Service and M/s. Delux Roadlines Pvt. Ltd. for transportation of goods during the year under consideration. The A.O. observed that the assessee has not deducted any TDS on the payments made to the said companies and the assessee contended that as the PAN of the transport company has been furnished, the assessee was on the belief that TDS was not to be deducted for the payments and relied on the provision of section 194C(6) of the Act. The A.O. disregarded the submission of the assessee for the reason that para 49.3 of the explanatory Circular for Finance (No.2) Act, 2009 has amended to exempt payment to transport operators from deducting TDS but subject to the condition that ....