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TMI Blog2015 (10) TMI 1372X X X X Extracts X X X X X X X X Extracts X X X X ..... der section 40(a)(ia) of the Act. The ground of appeal raised by the Revenue is dismissed. - Decided in favour of assessee. - ITA No.864 /Chd/2013 - - - Dated:- 20-3-2014 - SHRI T.R.SOOD AND MS. SUSHMA CHOWLA, JJ. For the Appellant : Shri Manjit Singh , DR For the Respondent : Shri Sudhir Sehgal ORDER Ms. Sushma Chowla (Judicial Member).- The appeal filed by the Revenue is against the order of the Commissioner of Income-tax (Appeals)-II, Ludhiana, dated February 26, 2013, relating to the assessment year 2008-09 against the order passed under section 143(3) of the Income- tax Act, 1961 (in short the Act ). 2. The ground of appeal raised by the Revenue reads as under : 1. That the learned Commissio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w of the provisions of section 40(a)(ia) of the Act. The assessee is deriving income from commission from transportation from different parties. The assessee is an association of persons, who in turn was paying transportation charges to its members whose trucks were taken on hire. The cumulative payments to such members were above ₹ 50,000 during the year and the Assessing Officer observed that in view of the provisions of section 194C of the Act, the assessee was liable to deduct the tax at source. As the assessee had failed to deduct the tax at source, the said expenditure totalling ₹ 19,71,922 was not allowed in the hands of the assessee in view of the provisions of section 40(a)(ia) of the Act by the Assessing Officer. The C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facts of the present case before us, the assessee union being an association of persons was taking tenders from various food grains agencies for the transportation of the bags of food grains from their respective godowns to different destinations. In order to achieve its objects, the union was made to maintain unity between several truck operators, who in turn would provide their vehicles for the purpose. The union comprised of small and poor truck operators and as per the claim of the assessee before us, each individual did not own more than two trucks. During the year under consideration, the assessee had made payment of ₹ 79,77,384 to 174 transporters and as per the details filed before the authorities below, the truck number of ve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... members for performance of the work as required for applicability of section 194C(2) of the Act. In such circumstances, section 40(a)(ia) of the Act was not applicable, as rightly held by the Commissioner of Income-tax (Appeals) and the Tribunal. Learned counsel for the Revenue also points out that the same view has been taken by the High Court of Himachal Pradesh in its order dated October 20, 2009, in I. T. A. No. 30 of 2005 CIT v. Ambuja Darla Kashlog Mangu Transport Co-op. Society [2009] 31 DTR 49 (HP) against which special leave petition was dismissed by the hon'ble Supreme Court on January 17, 2011, being SLP (Civil) . . . /2011, CC 259/2011 CIT v. Ambuja D. Mangu Transp. Co-op. Society. 9. The hon'ble Himachal Pradesh Hig ..... X X X X Extracts X X X X X X X X Extracts X X X X
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