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TMI Blog2018 (4) TMI 258X X X X Extracts X X X X X X X X Extracts X X X X ..... UDICIAL MEMBER AND SHRI D.S. SUNDER SINGH, ACCOUNTANT MEMBER For The Assessee : Shri V. Srinivasa Rao, DR For The Respondent : Shri G.V.N. Hari, AR ORDER PER D.S. SUNDER SINGH, Accountant Member: This appeal filed by the revenue is directed against order of the Commissioner of Income Tax (Appeals)-3, {CIT(A)}, Visakhapatnam vide ITA No.42/2015-16/CIT(A)-3/VSP/2017-18 dated 30.6.2017 for the assessment year 2005-06. The cross objection filed by the assessee is in support of the order of the Ld. CIT(A). 2. Brief facts of the case are that the assessee company is engaged in the business of handling and transport contractors at Visakhapatnam and consignment agent of RINL, Nagpur. The assessee filed its retur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e CIT(A) and the Ld. CIT(A) allowed the appeal of the assessee deleting both the addition of ₹ 27,00,000/- in respect of cash credits and the addition made in respect of disallowance u/s 40(a)(ia) of the Act. 4. Aggrieved by the order of the Ld.CIT(A), the revenue is in appeal before us against the addition u/s 40(a)(ia) of the Act. All the grounds of appeal are related to the deletion of addition for made u/s 40(a)(ia) of the Act. During the appeal hearing, the Ld. D.R. argued that the payment was made to CONCOR, a company which is engaged in the carriage of goods. Since the payment was not directly made to the Railways, the Ld. D.R. contended that the payment attract the TDS u/s 194C of the Act. Since the assessee failed to deduc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eight attracts the provisions of Section 194C of the Act or not. In this regard, it is pertinent to consider the relevant provisions of Section 194C of the Act, which are extracted as under: 194C. Payment to contractors (1) Any person responsible for paying any sum to any resident (hereafter in this section referred to as the contractor) for carrying out any work (including supply of labour for carrying out any work) in pursuance of a contract between the contractor and a specified person shall, at the time of credit of such sum to the account of the contractor or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct an amount equal to- (i) one per cent where ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nch of ITAT in the case of RasPotybuild Products Pvt Ltd. Vs. DCII (2016) 48 CCH 254 (Hyd)(Trib). The Hon'ble Tribunal held as under in their order: 6. We have carefully considered the rival contentions and perused the record. As rightly pointed out by the Learned Counsel appearing on behalf of the assessee, Section 194C speaks of payment made to contractors with an exception that even payments made to contractors would stand outside the purview of that provision if such payment is made tyiards carnage charges. In the instant case, the assessee categorically submitted that the payment was made to M/s. Exim Services towards freight charges that too for corn goods_by rail. This claim of the assessee is not disputed by the tax author ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e disallowance provided in Section 40(a)(ia) is also not applicable. The Assessing Officer is directed to delete the disallowance of ₹ 46,17,360/-. 7. The Ld. CIT(A) has followed the order of the coordinate bench of Hyderabad and the facts are not disputed by the Ld. D.R., The Ld. D.R. also did not bring any other decision in favour of the revenue. Therefore, respectfully following the view taken by the coordinate bench, we hold that the impugned payment does not attract the TDS u/s 194C of the Act and no disallowance is called for u/s 40(a)(ia) of the act. Hence the order of the Ld. CIT(A) is upheld and the appeal of the revenue is dismissed. 8 . CO/79/Viz/2007 : CO is supportive of the order Ld.CIT(A). Since we have upheld t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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