Case Law Details
Paras Nath Singh Vs ACIT (ITAT Patna)
Main grievance of the assessee is disallowance u/s 40(a)(ia) amounting to Rs. 25,74,023/- being the expenditure incurred in respect of freight and carriage. On this specific issue from the perusal of assessment order passed by the AO and it was come to our notice that he had categorically observed that assessee did not furnish the name and address of the party to whom payments were made on account of freight and carriage beside that assessee did not furnish the details of TDS before the AO also. Therefore, the ld. AO viewed that it was a clear violation of section 194C/40(a)(ia) of the Act. Similarly, view was taken by the ld. CIT(A) while deciding this issue and finds that assessee has not be able to furnish any details/documents in support of payment under the head of freight and carriage expenses and no TDS was deducted on such payment. Further he observed that assessee has failed to furnish certificate of Chartered Accountant as required by section proviso to section 40(A)(ia) of the Act and assessee has violated the provision of section 194C/40(a)(ia) of the Act and he disallowed the payments made on account of freight and carriage by virtue of section 40(a)(ia) of the Act.
While considering the above issues on board before us no new material placed before us to prove the fact contrary and from the impugned order passed by the ld. CIT(A) it is crystal clear that the payment made on account of freight and carriage by the assessee in violation of section 40(a)(ia) of the Act and assessee has not been able to furnished any details/documents in respect of such payments made under the head of freight and carriage expenses therefore, we do not want to interfere in the order passed by the authorities below, the ground raised by the assessee are accordingly dismissed.
FULL TEXT OF THE ORDER OF ITAT PATNA
The present appeal has been preferred by the assessee against the order of ld. CIT(A)-1 Patna dated 30.08.2018 [hereinafter referred to as ‘CIT’] passed u/s 250 of the Income Tax Act (hereinafter referred to as the ‘Act’). The assessee in this appeal has taken the following grounds of appeal:
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