2013 (11) TMI 660 - HC - Income Tax

Question of law to be raised before High Court - Addition on account of freight charges for non deduction of TDS Held that - No any substantial question of law arising in this appeal because whether the assessee has failed to deduct T.D.S. from the careers to freight charges were paid by it in excess of Rs.20,000/- in a particular transaction or in a sum of Rs.50,000/- p.a. to a particular career, is a question of fact and not a question of law Commissioner(A) as well as Tribunal concurrently held that the material placed by the assessee discloses that no payment has been made in excess of Rs.20,000/- in regard to single transaction or in excess of Rs.50,000/- p.a. to a particular career No interference required Decided against the Revenue.

Issues:
1. Appeal against the concurrent findings of the Commissioner of Income Tax Appeals and the Income Tax Appellate Tribunal regarding assessment year 2006-07.
2. Disallowance of claim regarding freight charges paid by the assessee.
3. Appeal by the Revenue against the order of the Commissioner of Income Tax Appeals.
4. Cross-objection filed by the assessee.
5. Decision on whether substantial question of law arises in the appeal.

Analysis:

1. The appellant filed an appeal against the concurrent findings of the Commissioner of Income Tax Appeals and the Income Tax Appellate Tribunal for the assessment year 2006-07. The Assessing Officer had determined the income of the assessee, a trader in coke and hollow bricks, at Rs.4,72,17,475 after making certain additions. The appellant contended that the disallowance of the claim regarding freight charges paid was erroneous. The Commissioner of Income Tax partially allowed the appeal, but the Revenue filed an appeal before the Tribunal. The Tribunal dismissed the appeal of the Revenue and partially allowed the cross-objection of the assessee. The High Court observed that no substantial question of law arose as the issue of deduction of T.D.S. from freight charges paid by the assessee was a question of fact. Both the Commissioner of Income Tax Appeals and the Tribunal found that no payments exceeding specified limits were made, leading to the dismissal of the appeal.

2. The assessee had filed a return of income for the year 2006-07 declaring a total income of Rs.19,74,500. The Assessing Officer, after scrutiny, determined the income at a higher amount and made certain additions. The appellant contended that the disallowance of the claim regarding freight charges was unjustified. The Commissioner of Income Tax Appeals partially allowed the appeal, but the Revenue challenged this decision before the Tribunal. The Tribunal dismissed the Revenue's appeal and partially allowed the cross-objection of the assessee, reducing the disallowed amount. The High Court upheld the concurrent findings that no payments exceeding specified limits were made, leading to the dismissal of the appeal.

3. The Revenue had filed an appeal against the order of the Commissioner of Income Tax Appeals regarding the assessment year 2006-07. The Commissioner had partially allowed the appeal of the appellant, but the Revenue was aggrieved by the disallowance of a certain amount. The Revenue's appeal was dismissed by the Tribunal, which also partially allowed the cross-objection of the assessee. The High Court found no substantial question of law arising in the appeal and upheld the concurrent findings regarding the deduction of T.D.S. from freight charges, leading to the dismissal of the appeal.

4. The assessee had filed a cross-objection against the order of the Commissioner of Income Tax Appeals. The Commissioner had partially allowed the appeal of the appellant, but the assessee was not satisfied with the disallowance of a certain amount. The Tribunal partially allowed the cross-objection of the assessee, reducing the disallowed amount. The High Court, after considering the arguments, found no substantial question of law and upheld the concurrent findings, resulting in the dismissal of the appeal.

5. The High Court, after hearing the arguments from both parties, concluded that no substantial question of law arose in the appeal. The issue of whether the assessee failed to deduct T.D.S. from freight charges paid above specified limits was deemed a question of fact, not law. Both the Commissioner of Income Tax Appeals and the Tribunal had found that no payments exceeding the prescribed limits were made. Therefore, the High Court upheld the concurrent findings and dismissed the appeal accordingly.

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