Case Law Details
Hanifbhai Hajimohammed Pinepalwala Vs ITO (ITAT Ahmedabad)
Section 194C requires the assessee to deduct the TDS on the expenses incurred in pursuance to the contract. Now, the controversy arises whether the transportation expenses incurred by the assessee are in pursuance to the contract as envisaged under the provisions of section 194C of the Act. In the case on hand, on perusal of the truck numbers to whom the assessee has made payment for the transportation expenses, we find that all of those numbers are registered with the state of Kerala from where the assessee is transporting the goods. Thus it can be inferred that all these transporters were engaged by the supplier but the payment was made by the assessee in her books accounts. Thus it can be inferred that there was no contract between the assessee and the transporters and accordingly the provisions of section 194C of the Act cannot be invoked in the case on hand.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
The captioned appeal has been filed at the instance of the Assessee against the order of the Learned Commissioner of Income Tax(Appeals)-10, Ahmedabad, dated 28/07/2016 arising in the matter of assessment order passed under s.143(3) the Income Tax Act, 1961 (here-in-after referred to as “the Act”) relevant to the Assessment Year 2008-2009.
2. The assessee has raised the following grounds of appeal:
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