9911796707
TMI Blog2023 (4) TMI 940X X X X Extracts X X X X X X X X Extracts X X X X ..... vant to the Assessment Year 2015-2016. 2. The Revenue has raised the following grounds of appeal: 1. The Ld.CIT(A) has erred in law and on facts in deleting the disallowance made by the Assessing Officer amounting to Rs.1,52,90,763/- u/s.40(a)(ia) of the Act in the light of provisions of section 194C(7) of the Act, without appreciating the facts of the case. 2. The Ld.CIT(A) has erred in law and on facts in deleting the disallowance made by the Assessing Officer amounting to Rs,1,52,90,763/- u/s 40 (a)(ia) of the Act in the light of provisions of section 194C(7) of the Act by relying on the decision of the Hon'ble Gujarat High Court in the case of Valibhai Khanbhai Mankad 216 Taxman 18 (Guj) against which the Special Leave Petitio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee under section 40(a)(ia) of the Act. 5. Aggrieved assessee carried the matter before the learned CIT (A) who deleted the addition made by the AO by observing that assessee complied the provisions of sub-section (6) to section 194C of the Act by obtaining the PAN of the transporters which were also furnished in form 26Q. The ld. CIT-A in holding so has made reference to various judicial pronouncement. 6. Being aggrieved by the order of the ld. CIT-A, the Revenue is in appeal before us. 7. The learned DR before us submitted that the assessee has not deducted the TDS on the expenses and therefore the same cannot be allowed as deduction while computing the income under the head business and profession. 8. On the other hand, the l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s which were furnished in the TDS return. Thus, in our considered view the claim of the assessee cannot be denied on account of non-deduction of TDS on the payment made to the transporters/freight expenses under sub-section (6) to section 194C of the Act. 10.2 Before parting, it is also important to note that the assessee was also under the obligation, after obtaining the PAN from the transporters, to furnish the same in the prescribed form to the prescribed authority within the prescribed time as provided under sub-section (7) to section 194C of the Act. The relevant provision of sub-section (7) to section 194C of the Act reads as under: (7) The person responsible for paying or crediting any sum to the person referred to in sub-section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tarding Co. reported in 104 taxmann.com 336 wherein it was held as under: In the instant case, once the assessee is in receipt of PAN and has not deducted TDS, it has complied with the first statutory obligation cast upon him and the assessee cannot be penalized for non-deduction of TDS. The provisions of section 40(a)(ia) which are deeming fiction relating to non-deduction of TDS have to be read in the limited context of non-deduction of TDS and the same cannot be extended to ensure that even where the assessee complies with his statutory obligation not to deduct TDS on receipt of PAN, merely because the subsequent obligation in terms of filing of prescribed forms has not been complied with, the assessee should suffer disallowance of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the transporters/ creditors. The appellant has submitted the list of transporters against whom expenditure of Rs. 5,09,69,209/- has been debited out of which Rs. 56,42,724/- has remained outstanding for payment. The appellant has contended that the payment has been made in the subsequent year and submit the evidences of payment made through bank account. The appellant has contended that section 68 cannot be invoked in case of creditors as it applies only to cash credit and relied upon the decision of Hon'ble Patna Tribunal in case of Vaghubar bar Singh Vs. DCIT (2017) and Chandigarh Tribunal in case of Ganesh Dass Jain Vs. ITO (201 7). It is seen that the AO has not doubted the expenditure of Rs. 5,09,69,209/- debited for the tra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the order of the authorities below as favourable to them. 16. We have heard the rival contentions of both the parties and perused the materials available on record. From the foregoing discussion, we find that the AO has treated the outstanding sundry creditors shown by the assesse as unexplained cash credit under section 68 of the Act in the absence of supporting details of the parties. However, on perusal of the order of the learned CIT-A, we find that it was contended by the assesse that the list of the parties representing outstanding liabilities was furnished during the assessment proceedings. The assesse further has submitted the additional document showing the payment made to the outstanding creditors in the subsequent year. The lea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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