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TMI Blog2021 (3) TMI 482X X X X Extracts X X X X X X X X Extracts X X X X ..... 94C - when further appeal was filed by the Revenue before the Tribunal, the said finding was not challenged, which is evident from the fact that the Tribunal has set aside the appeal to the file of the AO on the issue of applicability of provisions of section 40(a)(ia) of the Act on amounts paid and payable at the end of financial year. Tribunal while remanding the issue had further directed the AO to examine the applicability of provisions of section 194I of the Act. Therefore, when the issue of applicability of provisions of section 194C of the Act, has become final at the first appellate level and the said finding was not challenged before the Tribunal, then reconsidering the issue in the light of provisions of section 194C of the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e has raised the following grounds of appeal:- 1. The order of the CIT (Appeals) is opposed to law on the facts and in the circumstances of the case. 2. The CIT (A) erred in allowing the assessee s appeal and deleting the disallowance made by the under section 40a (ia) of the IT. Act 1961. 3. The CIT (A) failed to appreciate the fact that the ITAT had set aside the original order of the CIT(A) dated 27.08.2014 and restored the order of the A.O dated 30.12.2011. 4, The CIT(A) failed to appreciate that since the ITAT had set aside the order of the CIT(A), the issue become afresh and that the A.O had taken a decision considering the directions of the ITAT. 5. The CIT (A) failed to appreciate that the ITAT restored t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... applicable to the impugned payments. The Revenue filed appeal against order of CIT(A) and the Tribunal has set aside the appeal to the file of the AO on the issue of applicability of provisions of section 40(a)(ia) of the Act, by holding that provisions of section 40(a)(ia) of the Act is applicable even on amounts paid. The Tribunal further held that although provisions of section 194C has no application for the impugned payments but the amended provisions of section 194I w.e.f. 13.07.2006 covers payment of rent and hence directed the AO to examine the applicability of provisions of section 194I to impugned payment. The AO has taken up the case for examination in light of the directions of the Tribunal and held that the assessee hired lorr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aid for vehicles is coming under the provisions of section 194I of the Act. 5. The ld.CIT(A) after considering relevant submissions of the assessee deleted addition made by the AO towards hire charges for failure to deduct tax at source on the ground that in earlier round of litigation, the CIT(A) has given categorical finding in respect of hire charges paid to lorry owners does not exceed ₹ 20,000/- per day and consequently outside the scope of section 194C of the Act. The said finding of the ld.CIT(A) was not challenged before the Tribunal and the contention of the Revenue before the Tribunal was in the context of applicability of provisions of section 40(a)(ia) of the Act on amounts paid and payable and therefore, the AO was inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 194C of the Act, was become final and the same cannot be considered in the reassessment proceedings is incorrect. The ld.DR further submitted that when the Tribunal has restored the assessment to the AO, the decision taken by the AO considering the original assessment and the decision of the Tribunal is correct in the given facts and circumstances of the case. 7. The ld.AR for the assessee supporting order of the ld.CIT(A) submitted that the ld.CIT(A) has rightly deleted the disallowance made by the AO invoking the provisions of section 40(a)(ia) of the Act, on the ground that the AO has travelled beyond the directions of the Tribunal. The AR further submitted that the issue of applicability of provisions of section 194C of the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the agents and the same cannot be considered as formal contract between the assessee and the lorry owners to invoke the provisions of section 194C of the Act. It is also an admitted fact that when further appeal was filed by the Revenue before the Tribunal, the said finding was not challenged, which is evident from the fact that the Tribunal has set aside the appeal to the file of the AO on the issue of applicability of provisions of section 40(a)(ia) of the Act on amounts paid and payable at the end of financial year. The Tribunal while remanding the issue had further directed the AO to examine the applicability of provisions of section 194I of the Act. Therefore, when the issue of applicability of provisions of section 194C of the Act, h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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