2018 (7) TMI 139 - SCH - Income Tax

TDS u/s 194C - failure to deduct tds on payment to the transporters, which is mandatory in view of Section 40(a) (ia) for claiming the expenditure - Held that - SLP dismissed. HC order confirmed 2017 (7) TMI 1153 - RAJASTHAN HIGH COURT HC order confirmed saying Section 194(c) read with 204(iii) will come into operation only on the payment made by assessee and as rightly discussed since payment is not made by the assessee if at all there is default the default is of Mangalam. Since the payment was not received, the same is required to be considered in the books of account since TDS is deducted by the Mangalam on behalf of assessee completely. Therefore, if there is default in payment made, he is entitled to match the balance-sheet and he cannot claim for credit @ ₹ 20 per tonne as handling charges for arranging the truck for transportation.

Summary

The Supreme Court of India dismissed the special leave petition as no grounds were found to interfere with the impugned order. Delay was condoned and pending applications were disposed of. (2018 (7) TMI 139 - SC Order)