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TMI Blog2023 (3) TMI 1141X X X X Extracts X X X X X X X X Extracts X X X X ..... between the parties sustained the addition on account of undisclosed stock @12% of undisclosed stock and partly allowed ground raised by the assessee. TDS addition on freight charges - violation of provisions of section 194C(7) - HELD THAT:- As in the case of ACIT vs Mr. Mohammed Suhail [ 2015 (2) TMI 1187 - ITAT HYDERABAD] specifically held that provisions of section 194C(6) is independent of section 194C(7) and just because there is violation of provisions of section 194C(7) disallowance of u/s 40(a)(ia) does not arise if the assessee complies with the provisions of section 194C(6) of the Act. We find that the assessee complies with the provisions of section 194C(6) disallowance u/s 40(a)(ia) does not arise just because there i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iv. For that since the excess stock found on survey is the part and parcel of the identical goods manufactured by the appellant and since it is separately identifiable, therefore such excess stock is the business income of the appellant. v. For that there has been no tax evasion by the appellant on excess stock found in survey as the appellant paid huge advance tax of Rs. 36,99,000/-. vi. For that confirmation of the TDS addition on freight charges is unjust and incorrect since there has been no written agreement with the transporter and appellant is not the transport contractor. vii. For that appellant may modify the grounds. 2. Brief facts of the case are that the assessee is a private limited company engaged ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... against confirmation of addition of Rs. 53,94,245/- and Rs. 4,30,000/- respectively by the ld. CIT(A). 5. At the time of hearing, ld. AR submitted before us that the ld. CIT(A) in his order accepted the fact that alleged excess stock as income from the business. Therefore, the addition made by the authorities below on account of excess stock should be restricted only to the profit element in the stock and prayed that addition should be made @ 12% on alleged amount. On the other hand, ld. DR submitted before us stating that the assessee has miserably failed furnish any details during the course of assessment proceedings and even assessee did not make any endeavour to file revised trading account by incorporating the excess stock found dur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er before us. 8. On this issue, the ld. AR submitted that as the payments were made towards hiring charges to the parties by obtaining PAN details of the transporters. He further contended that in terms of provisions of section 194C(6) stated that once the transporters provide the PAN details to deductor then no deduction required to be made on freight payment to such transporters as per section 194C of the Act. The ld. AR also relied on the decision of co-ordinate bench in the case of Somarani Ghosh vs DCIT in ITA No. 1420/Kol/2015 where the Tribunal held that section 194C(6) or 194C(7) are independent to each other when condition as mentioned in section 194C(6) has been satisfied and need not required to comply with the provisions of s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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