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TMI Blog2016 (8) TMI 596X X X X Extracts X X X X X X X X Extracts X X X X ..... order of the Ld. CIT on this issue is bad in law. There is no error in the order of the A.O. warranting revision under section 263 of the Act. Disallowance of loading and un-loading charges - Held that:- CIT has based his conclusions on surmises and conjectures. There is no material before the Ld. CIT to come to the conclusion that the claim of the assessee is not genuine. Such suspicion cannot be a ground for review. Hence, the same is quashed. Unmatched financial charges - Held that:- There is no finding of the Ld. CIT that there is an error in the assessment order much less prejudice to the revenue. The method of accounting adopted by the assessee is being followed year after year. There is no fault that could be found in this syst ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted that there are no payments that are required to be subjected to TDS u/s.194C of the Act. But as per the Ledger extract copy of 'freight', the assessee claimed freight paid to twenty vehicles and debited Rs.l,26,97,222 upon which no TDS was made. Though it was claimed as most of the freight payments were outstanding and shown under sundry creditors' and hence no TDS was made, provisions of Sec.194C of the Act apply and failure to comply with them call for disallowance of such expenditure u/s 40(a)(ia) of the Act. (b) The nature of 'Loading charges' at Rs.l,50,000/- debited to the P L A/c has not been enquired into apart from finding the nexus of such expenses with the type of business carried out by the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rcumstances, there is no obligation on the part of the assessee to deduct tax at source. It was further submitted that the A.O. had examined this matter and the assessee had filed Form 15-I obtained from the transporters before the Ld. CIT and that these forms were produced before the A.O. during the original assessment proceedings and under such circumstances, the A.O. could not to have made disallowance under section 40(a)(ia) of the Act. It was submitted that the A.O. has taken a correct view on this issue and under those circumstances, the revision cannot be made by the Ld. CIT under section 263 of the Act. 5. The second issue is the finding of the Ld. CIT that the loading charges of ₹ 1,50,000 debited to the P L A/c, has no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue by this method of accounting. He relied on number of case laws in support of his contention that the order passed under section 263 is bad in law. 7. The Ld. D.R. on the other hand, submitted that the assessee had not appeared before the Ld. CIT and it was due to this reason that the CIT has passed an exparte order. He relied on the following decisions for the proposition that tax should be deducted at source under section 194C when the assessee hires vehicles, from owners of vehicles, for the purpose of utilising them in the transport contract he has entered into with its principal. i. Smt. J. Rama vs. CIT and another (2012) 344 ITR 608 ii. Shree Choudhary Transport Company vs. ITO (2009) 225 CTR 125 7.1. He further relied o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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