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TMI Blog2025 (1) TMI 1388X X X X Extracts X X X X X X X X Extracts X X X X ..... if it is assumed for a moment that there existed an oral contract between the parties, it is the submission of the assessee that the payment made to each lorry on each occasion did not exceed the threshold limit prescribed for deducting tax at source u/s 194C of the Act. The above said submission has not been disproved. Accordingly, we are of the view that the AO was not justified in invoking the provisions of sec. 40(a)(ia) of the Act for disallowing the freight charges - Accordingly, we set aside the order passed by Ld CIT(A) on this issue and direct the AO to delete the above said addition. Non deduction of TDS on Diesel & Fuel expenses - The reasoning given by us for deleting the disallowance of freight charges u/s 40(a)(ia) of the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd 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 the Assessing Officer for examining them afresh. Accordingly, impugned assessment order came to be passed by the AO. 4. The assessee is enga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dings 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 assessee. Further, it was submitted that the payments made for each of the vehicle at one point of time was less than the threshold limit pres ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ten 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 Pranjit Saikia vs. ACIT (2015)(59 taxmann.com 330)(Gau., wherein also Identical view has been expressed. 8. In the instant case, we notice that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st 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, the appeal filed by the assessee is partly allowed.
Order pronounced in the open court on 1st August, 2024. X X X X Extracts X X X X X X X X Extracts X X X X
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