COMMERCIAL CARRIERS PVT. LTD.,,JAMSHEPUR vs. ACIT, CIRCLE-1(1), JAMSHEPUR

Shri Devesh Poddar, Advocate अपीलाथ� क� ओर से/By Appellant Shri Inderjeet Singh, CIT-DR ��यथ� क� ओर से/By Respondent 04-03-2020 सुनवाई क� तार�ख/Date of Hearing 04-03-2020 घोषणा क� तार�ख/Date of Pronouncement आदेश /O R D E R PER BENCH (oral):- This assessee’s appeal for assessment year 2010-11 arises against the Commissioner of Income Tax (Appeals)-Jamshedpur’s order dated 04.02.2019 passed in case No.566/JSR/2017-18 involving proceedings u/s 143(3) r.w.s. 147 of the Income Tax Act, 1961; in short ‘the Act’. Heard both the parties. Case file perused

M/s Commercial Carriers (P) Ltd. Vs. ACIT Cir.1(1), JSR Page 2 3. Coming to merits, we notice that the assessee’s later substantive ground seeks to delete u/s 40(a)(ia) disallowance of hire charges paid to various trackers / transport operators without deducting TDS. This disallowance sum in dispute involves figure of Rs.3,34,60,529/-. There is no dispute that the assessee has indeed not deducted TDS on the said payments. The Revenue’s as per both the lower authorities detailed discussion that the assessee ought to have deducted TDS since the impugned hire charges are in the nature of sec. 194C contractual payments. We see no reason to express our concurrence with the impugned disallowance. The fact remains that there is no material on record suggesting any oral or written agreement between the assessee and its payees also that the any contractual liability of transportation of goods of undertaken at this taxpayer’s behest. We draw support from hon'ble Calcutta high court’s in Commissioner of Income Tax vs. M/s STUMM India ITAT No. 127 of 2019 dated 16.08.2010 to this effect.