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TMI Blog2021 (3) TMI 391X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome Tax Act is bad both on the facts and in law and income declared in the return should have been accepted. 2- That in any view of the matter the addition of Rs. 22,73,457/-u/s 40(a)(ia) of the Act on account of freight payment to various truck drivers as made by the Assessing Officer and confirmed by CIT(A) is highly unjustified. 3- That in any view of the matter addition of Rs. 22,73,457/-made u/s 40(a)(ia) is not correct since the said payment was made to various transporters and there is no contractual agreement hence provision of section 194C is not applicable but both the two lower authorities failed to appreciate the facts and has also not given cognizance to evidence placed on record hence addition made is highly unjustified. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owner. Thus, the assessee has contended that the payment is not covered under the provisions of Section 194C of the Act and not liable to deduct tax at source. The Assessing Officer did not accept this contention of the assessee and has held that the payment made to the truck drivers towards freight charges is covered u/s. 194C of the Act and consequently the same is disallowable u/s. 40(a)(ia) of the Act. The assessee challenged the action of the Assessing Officer before the ld. CIT(A) but could not succeed. 3. Before the Tribunal, the ld. Counsel for the assessee has submitted that the payment in question does not come within the ambit of Section 194C and therefore, there is no liability to deduct at TDS as per the provisions of Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e has referred to the provisions of Section 194C of the Act and submitted that there is amendment w.e.f. 01.06.2009 and as per the explanation the "term work" is defined inter alia carries of goods, passengers by any mode of transport other than by Railways. Therefore, the payment made by the assessee for transportation of goods for its business purpose falls in the ambit of Section 194C of the Act. The decision relied upon by the ld. AR of the assessee are in respect of the provisions of Section 194C prior to the amendment. He has further pointed out that for the AY 2014-15 there was no issue of payment without deducting TDS. 5. I have considered the rival submissions as well as material available on record. There is no dispute regarding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in invoking the provisions of Section 263 of the Act. The decision of the Tribunal is purely based on the scope of jurisdiction and power of this Commissioner u/s. 263 of the Act. As regards the other decisions of Hon'ble jurisdiction High Court as well as the decision of Hon'ble Gujarat High Court those decisions are not directly on the point of payment made to the transporter for transportation of the goods of the assessee. Therefore, those decisions would not help the case of the assessee. Since the assessee has pointed out that the Assessing Officer for the AY 2014-15 has not made any disallowance u/s. 40(a)(ia) in respect of the payment made to the transporters towards freight charges therefore, that crucial fact is required t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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