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TMI Blog2019 (12) TMI 1618X X X X Extracts X X X X X X X X Extracts X X X X ..... l as pre-amended provisions would show that the provision of 194C shall apply in respect of an individual in a particular year, only if he is liable to get his accounts audited u/s 44AB of the Act for the financial year immediately preceding that year in question. Assessee shall not be liable for deducting tax at source from transport payment, if his accounts of the immediately preceding financial year i.e FY 2008-09 (A.Y 2009- 10) are not be liable for audit u/s 44AB of the Act. In the letter furnished by the assessee before the AO, the assessee has claimed that he was not liable for getting his accounts audited u/s 44AB of eh Act in the immediately preceding financial year. For the limited purpose of examining the above said claim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeal filed by the assessee is directed against the order dated 25/4/2016 passed by ld CIT(A), Davangere and it relates to asst. year 2010-11. 2. The assessee has raised following issues in this appeal. a) Validity of reopening of asst. u/s 148 of the Act. b) Disallowance made u/s 40(a)(ia) of the Act. 3. The assessee is a transport contractor. He filed his return of income for the year under consideration declaring total income of Rs.1,90,900/-. The assessment was completed u/s 143(3) of the Act determining the total income at Rs.4,88,626/-. Subsequently the AO reopened the asst. u/s 148 of the Act on the basis of internal audit objections, wherein it was pointed out that the assessee has not deducted tax at source from transpo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... counts under clause (a) or clause (b) of section 44AB during the financial year immediately preceding the financial year in which such sum is credited or paid to the account of the contractor; 5. Prior to amendment, the proviso to section 194C (2) was applicable and the same reads as under:- Provided that an individual or a Hindu undivided family, whose total sales, gross receipts or turnover from the business or profession carried on by him exceed the monetary limits specified under clause (a) or clause (b) of section 44AB during the financial year immediately preceding the financial year in which such sum is credited or paid to the account of the sub-contractor, shall be liable to deduct income-tax under this sub-section. 6. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the financial year in which such sum is credited or paid to the account of the contractor: Since, I am not comes under the purview of Section 44AB of Income Tax Act, 1961 for the Assessment Year 2009-10. Hence. I am not liable to deduct the tax at source for the financial year 2009-10 (Assessment Year 2010-11). 8. However, the AO has taken the view that since the assessee was liable to get his accounts audited u/s 44AB of the Act in the asst. year 2008-09 (Fin. Year 2007-08), i.e., the year preceding the immediately preceding year, the assessee would be liable for deduction of tax at source from transport payment made during the year under consideration. We find that the above said interpretation made by AO and confirmed by ld CIT(A) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able for deducting tax at source from transport payment, if his accounts of the immediately preceding financial year i.e FY 2008-09 (A.Y 2009- 10) are not be liable for audit u/s 44AB of the Act. In the letter furnished by the assessee before the AO, the assessee has claimed that he was not liable for getting his accounts audited u/s 44AB of eh Act in the immediately preceding financial year. 12. In view of the discussion made Supra, for the limited purpose of examining the above said claim of the assessee, we restore this issue to the file of the AO. If the assessee has maintained books of account for the immediately preceding year and he was not liable for getting his accounts audited u/s 44AB of the Act, then the impugned disallowance ..... X X X X Extracts X X X X X X X X Extracts X X X X
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