9911796707
TMI Blog2022 (6) TMI 731X X X X Extracts X X X X X X X X Extracts X X X X ..... companies including A.C.C. Ltd., J.P. Cements etc. required the cement to be lifted and transported from the premises entered into an agreement with the assessee. Admittedly the assessee Society/Corporation did not own any trucks and agreements were entered into with ACC Ltd., Ambuja Cement etc. for transporting cement etc. from the premises. Since the assessee corporation did not own any trucks, these were hired by the Corporation and commission income from the said hiring activity was the income received by the Corporation only. However, since trucks have been engaged through the assessee by ACC Ltd. etc., the TDS deducted etc. payments by the ACC Ltd. were paid to the truck owners through the assessee, pleadings to this effect, we have noticed have been extracted in the respective orders, however, while passing the order, the AO, we find, has been guided by the fact that credit of TDS of freight receipts cannot be allowed as no freight receipts have been disclosed. Similarly, the ld. Commissioner is also influenced by this fact has confirmed the order. It is a fact that the freight receipts are not offered as income of the assessee as the income of the assessee was only com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uck owners/pliers. The commission received from the said activity, it was submitted, is the only income of the assessee. The AO ignoring the facts noticed that no freight receipts have been shown in the return filed, proceeded to disallow the claim of refund of TDS. The challenge before the CIT(A) failed as he also failed to consider the facts available on record. 3. Aggrieved by this, the assessee is in appeal before the ITAT. In the said background, it was his submission that the facts in the present case have been completely ignored. The assessee is entitled only to the commission income. The trucks etc. have been engaged through the assessee by ACC Ltd. and the TDS etc. deducted by the ACC etc. is paid to the truck operators and as far as the assessee is concerned, it is only a pass through arrangement. Pleadings to this effect, it was submitted, have been extracted in the impugned order itself (specific attention page 3) which have remained ignored. In the circumstances, it was his limited prayer that the issue may be remanded back to the file of the CIT(A) allowing the assessee to place the necessary facts on record. 4. The ld. DR considering the submissions extracted i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to carry the cement through trucks from the locations of the clients to different places in India. The Corporation did not own any trucks. Therefore, to provide gain full employment to truck owners i.e. members (Ex-Servicemen) of the corporation, it deployed their trucks for carriage of cement to various destinations and made the payments to truck owners. The members of the Corporation executed the said contract by providing their trucks for transportation. The entire amount received in respect of the transportation charges including the tax deducted at source are paid to the truck owners. Freight received by the Corporation is on behalf of truck operators and the very same amount is paid to truck operators. The Corporation just manage the system and for that Corporation charges purchase fee only. This payment is made on the basis of weekly cycle. 5.1. Considering the explanation, the Assessing Officer summed up the facts in the following manner: 5. During the course of assessment proceedings submission of the assessee has been considered and noticed that the main business of the corporation is transportation of cement through trucks from ACC Ltd. Barmana, Distt. Bilaspur, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e year under consideration but in the income tax return the assessee has claimed TDS on freight receipts also. The credit of TDS on freight receipts cannot be allowed as per section 199 of me income Tax Act, 1961 since no freight receipts has been disclosed by the assessee in its return of income. In view of above facts the assessee is not eligible for claiming the TDS credit on the receipts which was not disclosed by the assessee in its income tax return. As such the credit of TDS is not allowed. 6.1) I have gone through the facts of the case and the submissions of the appellant. The Appellant's grievance is that its claim for grant of credit of TDS was not considered u/s. 199 of the Act. In course of appellate proceedings the AR submitted the details of the freight receipts received from various parties of Rs. 95,15,45,598/- (as per books), as per 26AS it is Rs. 95,25,03,412/- and on this amount, TDS of Rs. 1,90,76,546/- was deducted. The contention of the appellant for granting TDS cannot be accepted since it had not offered the freight receipts as income for the year under consideration. The taxation rates for normal income and TDS deductions vary a lot. Further, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rusal of the record and in the light of the submissions of the parties, we find that in the interest of justice, it is appropriate to set aside the respective orders and restore the issue back to the file of the CIT(A) for a proper consideration on facts. The Agreements entered into by the assessee Corporation with the ACC Ltd. etc. for transportation of cement to various destinations from Barmana, Distt. Bilaspur, Ambuja Cement at Darlaghat and J.P. Cement etc. necessarily need to be looked into. It is an admitted fact that the freight receipt by the Corporation has been paid to the truck owners and it is claimed that TDS deducted by the ACC Ltd. is also as per practice paid to the truck owners after receipt of the same from the Income Tax Department. If the agreements and the facts support such a claim, then the appeal of the assessee, we are of the view, deserves to be allowed. Accordingly, the orders are set aside in the interests of justice and the issue is remanded back for a correct appreciation of facts. 7. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the Open Court on 24th May, 2022. - - TaxTMI - TMITax - Inc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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