RAJ CONSTRUCTION,VADODARA vs. THE ITO, WARD TDS-2, VADODARA

ITA 327/AHD/2026Status: DisposedITAT Ahmedabad30 September 2026AY 2018-194 pages
AI SummaryRemanded

What were the facts?

The assessee, Raj Construction, engaged in construction and maintenance, is in appeal against the order of the Commissioner of Income Tax (Appeals) for Assessment Year 2018-2019. The Assessing Officer initiated proceedings under Section 201 of the Income-tax Act, 1961, noting that the assessee had made payments to contractors aggregating to Rs.6,56,76,439/-. TDS under Section 194C was deducted on Rs.4,47,23,261/- but not remitted. Additionally, TDS was not deducted on transportation expenses of Rs.59,22,134/- and carting expenses of Rs.56,84,547/-. The Assessing Officer treated the assessee as an "assessee in default" under Sections 201(1) and 201(1A), raising a demand of Rs.7,02,005/-. The CIT(A) partly allowed the appeal, sustaining TDS liability under Section 201(1) at Rs.1,11,138/- on transport expenses of Rs.1,12,21,316/-, and directed recomputation of interest under Section 201(1A).

What did the Tribunal hold?

The Tribunal held that the assessee's claims regarding the non-deduction of TDS on transportation and carting expenses, the applicability of Section 194C(6), TDS already deducted and deposited, and the filing of correction statements required factual verification. The Tribunal noted that the assessee had furnished party-wise and amount-wise reconciliation before the CIT(A). In the interest of justice, the Tribunal decided to restore the matter to the Assessing Officer for fresh examination and verification. The Assessing Officer was directed to verify the party-wise reconciliation, supporting documents, PAN of recipients, applicability of Section 194C(6) conditions, number of goods carriages owned or hired, and TDS returns/correction statements. The Assessing Officer is to determine the liability under Section 201(1) and consequential interest under Section 201(1A) after affording the assessee an adequate opportunity of being heard. The order of the Ld. CIT(A) was set aside, and the matter was restored to the Assessing Officer for fresh adjudication. The grounds raised by the assessee were allowed for statistical purposes.

What were the issues?

1. Whether the Ld. CIT(A) erred in law and on facts by sustaining the TDS liability to the extent of Rs.1,11,138/- under Section 201(1) on transport expenses amounting to Rs.1,12,21,316/-. Assessee's Contentions: - Certain payments were not liable for TDS under Section 194C(6) of the Act. - TDS along with applicable interest had been deducted and paid. - The remaining discrepancy was due to technical issues in the TDS portal, for which correction statements were filed. Revenue's Contentions: - The judgment records no specific contentions for the revenue on this issue, other than their role in the assessment and appellate proceedings.

Which sections of the Income-tax Act were involved?

Section 201,Section 201(1),Section 201(1A),Section 194C,Section 194C(6)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “SMC” BENCH, AHMEDABAD

Before: DR. B.R.R. KUMAR, VICE- & SHRI RAHUL CHAUDHARY

For Appellant: Shri Rushin Patel, A.R
For Respondent: Shri Drop Singh Meena, Sr. DR
Hearing: 07.07.2026Pronounced: 30.09.2026

PER DR. B.R.R. KUMAR, VICE-PRESIDENT:

- Delay Condoned This appeal is filed by the Assessee against the appellate order dated 16.04.2025 passed by the Commissioner of Income Tax (Appeals) the Commissioner of Income Tax, Appeal ADDL/JCIT (A)-4 Bengaluru , relating to the Assessment Year 2018-19. 2. The assessee has raised the following grounds of appeal:

1.

The Ld. CIT(A) erred in law and on facts of the case, in sustaining the TDS liability to the extent of Rs.1,11,138/- u/s.201(1) on transport expenses amounting to Rs.1,12,21,316/-.

2.

The appellant craves leave to add, amend or alter the grounds of appeal at the time of hearing, if n

The order continues below.

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