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2018 (8) TMI 1357 - ITAT VISAKHAPATNAMDisallowance u/s 40(a)(ia) - Failure to deduct TDS u/s 194C - absence of contract between the transporter and assessee - Held that:- the assessee has placed an order for supply of the goods which was transported by the supplier and as per the instructions of the supplier, the payment was made. The assessee has neither engaged the services of the transporter nor the transporter rendered the services to the assessee, on receipt of goods the assessee has made the payment as per the ‘to pay’ bill issued by the supplier. The revenue has not made out any case to establish that the assessee had engaged the services of transporter to carry the goods. From the above facts, there is no express or implied contract between the assessee and the transporter. It is a case of engaging the transporters by the supplier and supply the goods to the assessee. Therefore, there is no case for deduction of tax at source u/s 194C. Once it is established that the assessee does not require to deduct the tax at source, there is no case for disallowance u/s 40(a)(ia) of the Act. - Decided in favor of assessee.
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