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TMI Blog2014 (4) TMI 234X X X X Extracts X X X X X X X X Extracts X X X X ..... eleting the addition of Rs. 2,57,36,253 made under section 40(a)(ia) of the Act being the amount paid to sub-contractors without deducting the tax at source as required under section 194C(2) of the Income-tax Act, 1961 ?" The assessment year is 2005-2006 and the relevant accounting period is the year that ended on March 31, 2005. The respondent-assessee is a cooperative society. For the assessment year under consideration, it declared total income at nil. By an order dated October 29, 2007, the Assessing Officer framed assessment under section 143(3) of the Act whereby he disallowed a sum of Rs. 2,57,36,253 by invoking the provisions of section 40(a)(ia) of the Act on the following grounds : "(i) The ONGC has deducted 'TDS on payment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submitting that the Tribunal had ignored certain fundamental issues and aspects and had rendered its decision on totally extraneous factors like problems faced by the individual vehicle owners and the ONGC and non-profit motive of the society. The impugned order passed by the Tribunal is, therefore, perverse as being contrary to the facts on record and, as such, deserves to be quashed and set aside. The facts as emerging from the record indicate that the ONGC Ltd. had found crude oil and natural gas in the areas of Ankleshwar, Hansot taluka and nearby talukas of Bharuch District. Such lands belonged to many small illiterate farmers. The ONGC formulated a scheme to acquire the said oil field land area from the farmers by compensating them. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tive expenses depending on actual usage. During the year under consideration, the assessee-society received Rs. 2,57,62,253 and the entire amount was distributed to the farmers. The Assessing Officer was of the view that the society is functioning as a sub-contractor and that it ought to have deducted TDS on payments made to each of the farmers as per the provisions of section 40(a)(ia) and section 194C. According to the Assessing Officer, the assessee was hiring cabs from farmers and renting them to the ONGC. Since in respect of jeep rental income of Rs. 2,57,36,253 no TDS was deducted the entire expenditure was not allowable under section 40(a)(ia) of the Act. Since the entire amount of Rs. 2,57,36,253 was paid to the farmers in cash, 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he formation of the society was convinced that the assessee had no profit motive and the activity of the society was more of a welfare activity. The Tribunal concurred with the findings recorded by the Commissioner (Appeals) and accordingly upheld the same. In the light of the above noted concurrent findings of fact recorded by the Tribunal upon appreciation of the evidence on record, this court is of the opinion that the reasoning adopted by the Tribunal is just and reasonable. Under the circumstances, it is not possible to state that there is any infirmity in the impugned order of the Tribunal so as to give rise to any question of law, much less, a substantial question of law so as to warrant interference. The appeal being devoid of meri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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