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TMI Blog2020 (4) TMI 22X X X X Extracts X X X X X X X X Extracts X X X X ..... t deduct or does not pay such tax or fails to pay such tax, after making the deduction, then such person shall be deemed to be an assessee in default in respect of such tax. Therefore, section 201 of the Act is applicable in the case of the assessee. We do agree that the freight and cartage charges paid to the transporters are subject to deduction of tax at source, but since the transporters are income tax assessee and once they have shown the said income in their income-tax returns, the Assessing Officer cannot create demand on the assessee. Our aforesaid view is duly supported by the decision of the Hon'ble Supreme Court in Hindustan Coca Cola Beverages Pvt. Ltd. vs. CIT [ 2007 (8) TMI 12 - SUPREME COURT] . We, therefore, in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... claring an income of ₹ 2,01,374/-. The Assessing Officer completed the assessment on an income of ₹ 3,79,930/-, vide order dated 22/11/2011, passed under section 143(3) of the Income Tax Act. 4. Thereafter, proceedings under section 263 of the Act were initiated, on the ground that on the freight paid during the year, amounting to ₹ 9,32,378/- (8,09,896/- + 1,71,216/-), TDS was not deducted and the same should be disallowed under section 40(a)(ia) of the Act. In this regard, the assessee filed the detailed submission stating that TDS is not attracted, as the freight payments are not contractual in nature and moreover the transporter have their PAN number and the entire freight payments were paid during the year, hence ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ber, service tax registration number, confirmation from the transporters that they are income tax assessee, having PAN number; that there was no contractual agreement between the assessee and the transporters; and that moreover, the assessee had made payment as per bills issued by the suppliers and since there was no expressed or implied contract between the assessee and the transporters, the assessee was not liable to deduct TDS under section 194C of the Act. After considering the submissions of the assessee and the material available on record, the ld. CIT(A) confirmed the order of the Assessing Officer. 7. As contended before the authorities below, the ld. Counsel for the assessee has contended before us that since there was no contra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the due date specified in sub-section (1) of section 139 of the Act. But, in the present case, as contended by the assessee, there was no contractual agreement between the assessee and the transporters, therefore, the case of the assessee is not covered under section 40(a)(ia) of the Act. 10. Section 201 of the Act provides that where any person, including the principal officer of a company or an employer, who is required to deduct tax at source on any sum, in accordance with the provisions of the Act, does not deduct or does not pay such tax or fails to pay such tax, after making the deduction, then such person shall be deemed to be an assessee in default in respect of such tax. Therefore, section 201 of the Act is applicable in the c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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