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TMI Blog2014 (1) TMI 742X X X X Extracts X X X X X X X X Extracts X X X X ..... made to sub-contractors on which the assessee had not deducted TDS - The total disallowance worked out under 40(a) (ia) was Rs. 33,76,994 - CIT(A) after considering the submissions of the Assessee noted that the amended provisions of section 194C with effect from 01.10.2004 applied to the transactions entered into on or after that date and hence the aggregate limit of contractual amount of Rs. 50,000/- for application of TDS provisions has to be calculated for the period 1.10.2004 onwards – the relief granted to the assessee of Rs. 19,27,931 being the payment made in excess of Rs. 50,000 reckoned from 01.10.2004 – Revenue could not controvert the findings of CIT(A) – There was no reason to interfere with the order of CIT(A) – Decided agai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned at Rs. 78,26,260/-. Aggrieved by the order of Assessing Officer, Assessee carried the matter before CIT(A). CIT(A) vide order dated 24.05.2010 granted partial relief to the Assessee. Aggrieved by the aforesaid order of CIT(A) the Assessee as well as Revenue are in appeal before us. Before us the effective grounds raised by Assessee reads as under:- 1. On the facts and circumstances of the case, the learned CIT(A0 has grossly erred in confirming the action of the Assessing Officer by initiating the reopening assessment proceedings and thereby passing an order u/s. 143(3) r.w.s. 147 of the Act, which is absolutely erroneous and bad- in-law and needs to be annulled in the interest of natural justice and equity. 2. Without prejudice to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... course of assessment proceedings, Assessing Officer noticed that Assessee had shown sub-contract payments of freight expenses of Rs. 1,20,85,955/-. On perusing the TDS certificate, he noticed that assessee has also received freight from various parties. Assessing Officer was of the view that as per provisions of section 194C(2), the Assessee was required to deduct TDS on freight expenses. Further on perusing the freight expenses data Assessing Officer noticed that Assessee has made payments in excess of Rs. 50,000/- to single party for the truck and the aggregate of such amount was Rs. 33,76,994/-. Assessing Officer was of the view that as per provisions of Section 40(a) (ia) read with section 194C the amounts which are paid the sub-contrac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellant gets relief of Rs.l9,27,931 and the disallowance as made by the ITO is directed to be restricted to Rs. 14,49,063 (i.e. Rs.33,76,994 - Rs. 19,27,391). Needless to mention that the transaction prior to the date of amendment will go outside the purview of the said provisions. In the result this ground of appeal of the appellant is partly allowed. 7. Aggrieved by the aforesaid order of CIT(A), the Assessee is now in appeal before us. 8. Before us, the learned A.R. submitted that the Assessee owns three trucks and had also hired the trucks for the purpose of transportation goods of the parties. The rates fixed with any transporter are fixed for a singly trip only and depends upon the prevailing market conditions. He further submitted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Gujarat High Court. Hon. Guj. High Court in Tax Appeal No. 159 of 2011 (order dated 9.10.2012) dismissed the appeal of the Assessee. He placed on record at page 51 to 52 decision of Tribunal and on page 23 to 36 the order of Guj. High Court. He thus urged that the addition made by the Assessing Officer be deleted. 10. The learned A.R. on the other hand submitted that whether the assessee is a contractor or a sub-contractor has not been examined either by the Assessing Officer or by CIT(A). He therefore submitted that the matter be remitted to the file of CIT(A) for examination of this aspect. 11. We have heard the rival submissions and perused the material on record. Before us the ld. A.R. had submitted that as per the provisions of s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sidering the submissions of the Assessee noted that the amended provisions of section 194C with effect from 01.10.2004 applied to the transactions entered into on or after that date and hence the aggregate limit of contractual amount of Rs. 50,000/- for application of TDS provisions has to be calculated for the period 1.10.2004 onwards. He accordingly granted relief to the assessee of Rs. 19,27,931/- being the payment made in excess of Rs. 50,000/- reckoned from 01.10.2004. Aggrieved by the aforesaid orders of CIT(A), Revenue is in appeal before us. 15. Before us, the learned D.R. could not controvert the findings of CIT(A) and thus we find no reason to interfere with the order of CIT(A). Thus this ground of Revenue is dismissed. 16. Se ..... X X X X Extracts X X X X X X X X Extracts X X X X
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