9911796707
TMI Blog2025 (1) TMI 1388X X X X Extracts X X X X X X X X Extracts X X X X ..... under Section 40(a)(ia) of the Income Tax Act, 1961 ('Act' for short) for non-deduction of tax at source and disallowance of truck repair and maintenance expenses for non production of bills and vouchers. 2. This appeal is barred by limitation by 25 days. The assessee has filed petition requesting the bench to condone the delay. We heard the parties on this preliminary issue. Having regard to the submissions made in the petition, we condone the delay and admit the appeal for hearing. 3. This is the second round of proceedings. The original assessment order passed by the Assessing Officer travelled upto the Tribunal and the Tribunal vide, order its dated 14.09.2012 passed in ITA No. 1321/Mum/2021 restored the matters back to the file of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the first round of proceedings. The learned CIT(A) confirmed all the additions made by the Assessing Officer in the second round of proceedings and hence assessee has filed this appeal before us. 5. We heard rival contentions and perused the record. With regard to the freight charges paid by the assessee, it was submitted that the assessee owned only two trucks and whenever there is requirement of additional trucks, he has hired them from the market at the prevailing market rates. It was submitted that no contract is entered for that purpose and the freight charges are finalised on the basis of prevailing market rates. Accordingly, it was submitted that those payments cannot be said to have been made as per the contract entered by the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at with regard to payment to transporters for arranging trucks, a finding of fact has been recorded that there was neither any oral or written agreement between the assessee and the transporters for carriage of goods nor it has been proved that any freight charges were paid to them in pursuance of a contract for a specific period, quantity or price. Further, the Tribunal too has clearly stated that nothing has been brought on record by the AO to prove that there was written or oral agreement between the parties for carriage of goods. Therefore, assessee was not liable to deduct tax under s.194C from payments made to the transporters. The Ld A.R also placed reliance on the decision rendered by Guwahati bench of Tribunal in the case of Pranji ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er passed by Ld CIT(A) on this issue and direct the AO to delete the disallowance of Diesel & Fuel expenses of Rs. 54,40,044/-. 10. The last issue relates to partial disallowance of Truck repairs and maintenance expenses. The AO had initially disallowed entire expenditure. However, the Ld CIT(A) restricted the disallowance to 15% of the expenses in the first round of proceedings. The same has been reiterated by the AO in the second round also. We notice that the above said adhoc disallowance was made for the reason that the assessee did not produce bills and vouchers, which defect remained unrectified in the second round also. Accordingly, we confirm the disallowance of 15% of the Truck repaid and maintenance expenses. 11. In the result, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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