TaxTMI 
TaxTMI 
2023 (9) TMI 1535
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....ses which are in fact not attracted and having not substantiated the freight expenses with concrete evidence which is arbitrary and illegal. 3. That the Ld. Commissioner of Income Tax (Appeals) has further erred in holding that Declaration/certificate with PAN BTWPS9807F from M/s Supreme Cargo Carriers to whom freight expenses have been paid is not as per law which is arbitrary and unjustified. 4. That the assessee appellant has not been provided/afforded adequate reasonable/sufficient opportunity of being heard according with the principles of natural justice and in accordance with law especially when no SHOW-CAUSE notice to this effect was issued by the Assessing Officer to present its case which is a fundamental infirmity not curable by any provision of the Act/law and hence the order passed is illegal and void abinitio. 5. That the appellant craves leave to add or amend the grounds of appeal before the appeal is finally heard or disposed off. 6. That the order of the Ld. CIT(A) is erroneous, arbitrary, opposed to the facts of the case and thus untenable." 3. Briefly the facts of the case are that the assessee firm filed its return of income declaring total income ....
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....se of the appellate proceedings. It was submitted that the salary paid by the assessee firm to its employees has been accounted for and has been allowed right from the date of the inception of the assessee's business and which is evident from the comparative chart furnished during the course of appellate proceedings. It was submitted that the requisite details and information in terms of salary register, month-wise salary payment were duly submitted during the course of assessment proceedings and which have not been taken into consideration by the AO and the addition have been made. 4.1 Regarding freight expenses, it was submitted that the necessary details and information in terms of freight vouchers and declaration under section 194C(6) from M/s Supreme Cargo Carrier were duly submitted during the course of assessment proceedings and the same were again submitted. It was further submitted that the bills of freight expenses containing necessary details as well as the mode of payment were duly submitted during the course of assessment proceedings and therefore the authenticity of the truck provider namely M/s Supreme Cargo Carrier stands fully proved beyond any doubt. It was submi....
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....reme Cargo Carrier', the authenticity of which could not be proved by the assessee. The appellant during the appeal proceedings submitted the declaration from the Supreme Cargo Carrier (PAN : BTWPS9807F) as per the provisions of Section 194C(6) and hence has not deducted TDS on the freight expenses. 6.3 In the above declaration, the Supreme Cargo Carrier has declared that the number of goods carriage owned by it is nil and requested not to be deduct TDS from any sum credited or paid by the assessee during the financial year 2016-17. The above referred declaration is very general in nature. Besides, the following format is specified by the Board vide Circular No. 19/2015 dated 27.11.2015 for furnishing the declaration: "Declaration under section 194C(6) of the Income Tax Act, 1961 No ............. (To be provided by payee) Date : From: (Name and address of the payee) To : (Name and address of the payer) The freight / transport charges amounting to Rs .................. for transportation of goods by goods carriages having Registration Number .................
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....ailable at pages 141 to 165. Further reference was drawn to the submission dt. 29/11/2019 wherein the assessee again submitted details of salary paid during the period 01/04/2016 to 31/03/2017 available at paper book page 170 to 175 and details of freight expenses for the said period alongwith copy of the declaration issued by M/s Supreme Cargo Carrier available at assessee's paper book page 176 to 177. 6.1 It was further submitted that the submissions so made before the AO were again brought to the notice of the Ld. CIT(A) as part of the written submission which are available at assessee's paper book page 181 to 228. It was accordingly submitted that the assessee has filed the necessary information and documentation in support of its claim of salary and freight expenses and both the lower authorities have failed to appreciate that the TDS provision are not applicable on the salary expenses for the reason that the salary paid to each of the employees is below the taxable limit as so provided in the statute and therefore there is no liability cast on the assessee in terms of section 192 for making any TDS before making any such salary payment to its employees. Further it was submit....