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TMI Blog2018 (2) TMI 982X X X X Extracts X X X X X X X X Extracts X X X X ..... 2008-09. 2. According to the appellant, the following substantial question of law arises:- 1. Whether upon the facts and circumstances of the case, the Hon'ble ITAT justified in law in quashing the assessment order of the Assessing Officer on the ground that A.O. has no power to review in the absence of any fresh tangible material whereas specific reasons for reopening of the case were recorded by the A.O.? 3. The Assessing Officer passed an order under section 144 read with section 147 of the Act. He held that the freight payment of about Rs. 1.88 crores from 01.04.2007 to 31.03.2008 to the truck owners without deduction of tax at source was not allowable as a business expenditure. The amount was, therefore, disallowed under section 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ruck driver after completing his job or you can say that after delivering the goods at the destination from the person to whom goods have been delivered. The assessee is the link between the firms (supplying the goods) and the truck owners. Basically, the assessee acts only as the commission agent and his nature of job is to provide the transportation services to the firms to transfer their goods safely. For example M/s Hero Cycles Ltd. wants a truck to deliver their goods from Ludhiana to West Bengal and for that they want sum truck to do the job. For which the assessee gives his bid of Rs. 25,000/- as the least fare and after finalizing the deal M/s Hero Cycles Ltd. gives him some nominal amount Rs. 4,500/- (Rs. 5,000/- minus TDS deduc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reasons for reopening are only that the assessee had shown payment amounting to Rs. 1.18 crores on account of freight paid to the truck owners for which the assessee had not supplied any details. It was, therefore, presumed that the assessee was liable to deduct tax at source under section 194(c)(ii) which applies to the case of sub contractors. 6. As we noted earlier the details in respect of transactions were called for by the Assessing Officer and the assessee furnished the same. On the basis thereof the Assessing Officer accepted the return in this respect. The Tribunal on this basis and after following the judgments of Delhi High Court in Madhukar Khosla v. Assistant Commissioner of Income Tax (2014) 90CCH 0023 Delhi High Court and O ..... X X X X Extracts X X X X X X X X Extracts X X X X
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