Hightension Switchgears (P) Ltd., Kolkata V. I.T.O., Ward - 5(4), Kolkata, Kolkata

ITA 2053/KOL/2009

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 7979 (ITAT-KOLKATA)
• Duration Of Justice: 3 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-03-2010
• Appeal Filed By: Assessee
• Bench Allotted: C
• Assessment Year: 2006-2007
• Appeal Filed On: 03-12-2009
• Court: TRIBUNAL
• Department Lawyers: JYOTI KUMARIDR
• Assessee Lawyers: M P THARD
• Keywords: TDS
• Section: 40(a)(ia); 194C

Judgement Text

, , , IN THE INCOME TAX APPELLATE TRIBUNAL, BENCH- C , KO LKATA ( ) BEFORE . . . . . . . . , ,, , SHRI B.R.MITTAL, JUDICIAL MEMBER. ! ! ! ! /AND . . . . . .. . ' ' ' ' , , , , #$ , SHRI B.C.MEENA, ACCOUNTANT MEMBER. !% !% !% !% /ITA NO. 2053/KOL/2009 '& '( / ASSESSMENT YEAR 2006-07 HIGHTENSION SWITCHGEARS (P) LTD., 32, EZRA STREET,KOLKATA 700 001 AAACH 6730 R - ' - - VERSUS -. INCOME-TAX OFFICER, WARD 5(4), KOLKATA. ( +, / APPELLANT ) ( -. +, / RESPONDENT ) +, / 0 # / FOR THE APPELLANT: / SHRI M.P.THARD, AR -.+, / 0 # / FOR THE RESPONDENT : / SMT. JYOTI KUMARI,DR #1 #1 #1 #1 / ORDER . . . . . . . . , ,, , SHRI B.R.MITTAL, JUDICIAL MEMBER. THE ASSESSEE HAS FILED THIS APPEAL FOR THE ASSESSME NT YEAR 2006-07 AGAINST ORDER OF THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS) DT.7.9.2009. 2. IN GROUND NO.1 OF THE APPEAL, THE ASSESSEE HAS D ISPUTED THE ORDER OF THE LEARNED CIT(A) IN CONFIRMING THE ADDITION OF RS.69, 57,975 MADE BY THE ASSESSING OFFICER FOR NON-DEDUCTION OF TDS ON THE FREIGHT AMO UNT CHARGED BY THE SELLERS OF GOODS NAMELY M/S. RELIANCE INDUSTRIES LTD., AND M/S . GULSHAN SUGARS & CHEMICALS LTD., AGAINST THEIR SALE BILLS. 3. THE FACTS, IN BRIEF, ARE THAT THE ASSESSEE COMPA NY IS ENGAGED IN MANUFACTURING PVC PIPES. UPON EXAMINATION OF BOOKS OF ACCOUNTS, THE ASSESSING OFFICER NOTICED THAT THE ASSESSEE HAS MADE PAYMENTS AGAINST THE PURCHASE BILLS, WHICH CONTAIN COST OF GOODS SOLD TO THE ASSESSEE AS WELL AS FREIGHT, CHARGED FOR TRANSPORTATION OF THE SAID GOODS. THE ASSESSING OFF ICER WAS OF THE VIEW THAT THE ASSESSEE WAS REQUIRED TO DEDUCT TAX AT SOURCE ON TH E PAYMENT OF FREIGHT. THE 2 !% /ITA NO. 2053/KOL/2009 ASSESSEE EXPLAINED BEFORE THE ASSESSING OFFICER THA T THE SUPPLIERS, NAMELY M/S. INDIAN PETROCHEMICALS LTD., ( A GROUP OF RELIANCE I NDUSTRIES LTD) AND M/S. GULSHAN SUGAR & CHEMICALS LTD., CHARGED CARRIAGE OU TWARD IN THEIR RESPECTIVE INVOICES AND ASSESSEE HAD TO MAKE THE ENTIRE PAYMEN T TO THE SAID PARTIES AND NOT TO ANY TRANSPORT CONTRACTORS AND THEREFORE, NO TDS IS REQUIRED TO BE DEDUCTED ON THE AMOUNT OF FREIGHT PAID TO THE ABOVE TWO PARTIES. TH E ASSESSING OFFICER HELD THAT THE FREIGHT CHARGES ARE DISTINCTIVELY SHOWN IN THE BILLS, WHICH HAS BEEN PAID BY THE ASSESSEE TO THE ABOVE TWO PARTIES AND AS SUCH THE A SSESSEE WAS REQUIRED TO DEDUCT TDS ON THE PAYMENT OF THE SAID AMOUNT. SINCE THE AS SESSEE HAS NOT DEDUCTED TDS ON SUCH AMOUNT OF FREIGHT, THE ASSESSING OFFICER DI SALLOWED THE AMOUNT OF RS.69,57,975 BEING THE FREIGHT CHARGES PAID BY THE ASSESSEE TO THE SUPPLIERS. IN APPEAL, THE LEARNED CIT(A), CONSIDERING THE SUBMISS IONS OF THE ASSESSEE AND THE FACTS OF THE CASE CAME TO CONCLUDE THAT THE ASSESSE E WAS LIABLE TO DEDUCT TDS U/S.194C ON THE TRANSPORT CHARGES SO PAID. HE, THER EFORE, UPHELD THE ACTION OF THE ASSESSING OFFICER. AGGRIEVED, THE ASSESSEE HAS PREF ERRED APPEAL HERE BEFORE THE TRIBUNAL. 2.1. DURING THE COURSE OF HEARING, THE LEARNED AR O F THE ASSESSEE SUBMITTED THAT THE PROVISIONS OF SECTION 194C OF THE INCOME-TAX AC T,1961 ARE NOT APPLICABLE TO THE FACTS OF THE CASE OF THE ASSESSEE. THE LEARNED AR OF THE ASSESSEE REFERRED TO PAGES 20 TO 26 OF THE PB AND SUBMITTED THAT THESE A RE THE COPIES OF SOME OF THE INVOICES RAISED BY THE SUPPLIERS M/S. RELIANCE INDU STRIES LTD., AND M/S. GULSHAN SUGARS & CHEMICALS LTD., AND THE SAID INVOICES THE FREIGHTS WERE CHARGED BY THE SUPPLIERS. THE ASSESSEE MADE THE PAYMENTS AS PER IN VOICES OF THE SUPPLIERS OF GOODS INCLUDING FREIGHT CHARGES. THE LEARNED AR OF THE ASSESSEE ALSO REFERRED TO PAGES 27 TO 30 OF THE PB, WHICH ARE THE COPIES OF T HE INVOICES RAISED BY THE SUPPLIER M/S. GULSHAN SUGARS & CHEMICALS LTD., AN D SUBMITTED THAT THESE INVOICES ARE COMPRISING OF VARIOUS COMPONENTS INCLU DING THE FREIGHT FOR TRANSPORTATION OF GOODS TO THE ASSESSEE AND THE PAY MENTS WERE MADE BY THE ASSESSEE TO THE SUPPLIER. THE LEARNED AR OF THE ASS ESSEE SUBMITTED THAT THE TRANSPORTERS ARE ARRANGED BY THE SUPPLIERS AND NOT BY THE ASSESSEE. HENCE, THERE 3 !% /ITA NO. 2053/KOL/2009 WAS NO RELATIONSHIP OF THE ASSESSEE WITH THE TRANSP ORTERS. THEREFORE, THERE WAS NO LIABILITY FOR THE ASSESSEE TO DEDUCT TDS IN RESPECT OF THE PAYMENTS MADE BY THE ASSESSEE TO THE SUPPLIERS OF GOODS AS PER THE INVOI CES. THE LEARNED AR OF THE ASSESSEE ALSO REFERRED TO PAGES 9 TO 13 OF THE PB A ND SUBMITTED THAT THE SAID SUPPLIERS HAVE DEDUCTED TDS OUT OF THE FREIGHT AMOU NT RECEIVED BY THEM FROM THE ASSESSEE BEFORE MAKING PAYMENT TO THE TRANSPORTERS. THE LEARNED AR OF THE ASSESSEE SUBMITTED THAT THE DISALLOWANCE MADE BY TH E AUTHORITIES BELOW BY APPLYING THE PROVISIONS OF SECTION 40(A)(IA) OF THE ACT IS NOT VALID IN LAW. 2.2. THE LEARNED DR, ON THE OTHER HAND, SUBMITTED T HAT THE AMOUNT OF FREIGHT CHARGES HAVE BEEN SHOWN BY THE SUPPLIERS IN THEIR I NVOICES SEPARATELY WHICH THE ASSESSEE HAS PAID TO THEM. THE LEARNED DR SUBMITTED THAT THE SUPPLIERS HAVE ACTED AS AGENTS OF THE ASSESSEE FOR TRANSPORTING THE GOOD S TO THE ASSESSEE. THAT THE SUPPLIERS HAVE COLLECTED THE FREIGHT CHARGES FROM T HE ASSESSEE AND PAID TO THE TRANSPORTERS. THE LEARNED DR SUBMITTED THAT THE ASS ESSEE HAS NOT DISPUTED THE FACT THAT THE SEPARATE PAYMENTS AS PER INVOICES WERE MAD E BY THE ASSESSEE TOWARDS FREIGHT CHARGES AND THE ASSESSEE HAS ALSO SHOWN THE FREIGHT EXPENSES INCURRED SEPARATELY IN ITS PROFIT & LOSS ACCOUNT. THE LEARNE D DR SUBMITTED THAT THE ASSESSEE WAS REQUIRED TO DEDUCT TDS IN RESPECT OF THE FREIGH T CHARGES REIMBURSED TO THE SUPPLIERS. THE LEARNED DR PLACED RELIANCE ON THE DE CISION OF THE ITAT, A-BENCH, KOLKATA IN ITA NO.1418/KOL/2009 DT.15.01.2010 IN TH E CASE OF PODDAR SONS EX.L.(P) LTD., V. ITO AND ALSO PLACED RELIANCE ON T HE DECISION OF THE ITAT, B- BENCH, BANGALORE IN THE CASE OF SMT.J.RAMA V. ITO ( 2009 TIOL 113 ITAT).THE LEARNED DR SUBMITTED THAT SINCE THE ASSESSEE FAILED TO DEDUCT TDS IN RESPECT OF FREIGHT CHARGES PAID BY THE ASSESSEE TO ITS SUPPLIE RS WHO IN TURN PAID TO CONCERNED TRANSPORTS ON BEHALF OF THE ASSESSEE, THE LEARNED C IT(A) HAS RIGHTLY CONFIRMED THE ACTION OF THE ASSESSING OFFICER TO MAKE DISALLOWANC E AS PER SECTION 40(A)(IA) OF THE ACT. 2.3. WE HAVE CAREFULLY CONSIDERED THE SUBMISSIONS O F THE LEARNED REPRESENTATIVE OF THE PARTIES AND ORDERS OF THE AUTHORITIES BELOW. WE HAVE ALSO GONE THROUGH THE 4 !% /ITA NO. 2053/KOL/2009 RELEVANT PAGES OF THE PB TO WHICH OUR ATTENTION WAS DRAWN AND ALSO THE CASES CITED BEFORE US (SUPRA). 2.4. ON PERUSAL OF INVOICES/BILLS PLACED AT PAGES 2 0 TO 30 OF THE PB, THERE IS NO DISPUTE TO THE FACT THAT FREIGHT CHARGES PAYABLE BY THE ASSESSEE ARE SEPARATELY SHOWN IN THE SAID BILLS/INVOICES. THE ASSESSEE HAS ALSO PAID THE SAID FREIGHT CHARGES AS PER INVOICES TO THE SUPPLIERS NAMELY, M/S. RELIA NCE INDUSTRIES LTD., AND M/S. GULSHAN SUGARS & CHEMICALS LTD. WE ALSO OBSERVE ON PERUSAL OF THE SAID BILLS/INVOICES THAT THE NAME OF THE TRANSPORTERS AR E ALSO STATED THROUGH WHICH THE GOODS HAVE BEEN TRANSPORTED TO THE ASSESSEE. AS PER SECTION 194C OF THE ACT, ANY PERSON RESPONSIBLE FOR PAYING ANY SUM TO ANY RESIDE NT FOR CARRYING OUT ANY WORK I.E,. INTER ALIA CARRYING OF GOODS BY ANY MODE OF T RANSPORT OTHER THAN BY RAILWAYS , IS REQUIRED TO DEDUCT TDS AT THE TIME OF PAYMENT IN CASH OR BY ISSUE OF CHEQUES OR DRAFT OR BY ANY OTHER MODE @2% OF SUCH AMOUNT AS IN COME TAX ON INCOME COMPRISING THEREIN. WE ARE OF THE CONSIDERED VIEW T HAT THE SAID SUPPLIERS HAVE SUPPLIED THE GOODS TO THE ASSESSEE AND `AS FAR AS T HE TRANSPORT OF THE SAID GOODS, THE GOODS WERE TRANSPORTED TO THE ASSESSEE BY ACTING AS AN AGENT ON BEHALF OF THE ASSESSEE AND THE ASSESSEE HAS REIMBURSED THE FREIGH T CHARGES TO THE SUPPLIERS, WHO IN TURN HAVE PAID TO THE CONCERNED TRANSPORTERS. T HE ASSESSEE HAS ADMITTEDLY NOT DEDUCTED TDS IN RESPECT OF FREIGHT CHARGES REIMBURS ED TO THE SUPPLIERS OF GOODS. DURING THE COURSE OF HEARING, THE LEARNED AR OF THE ASSESSEE SUBMITTED THAT THE SAID SUPPLIERS HAVE DEDUCTED TDS AND REFERRED TO PA GES 9 TO 13 OF THE PB TO SUBSTANTIATE HIS SUBMISSION. HOWEVER, IN THIS REGAR D WE CONSIDER IT RELEVANT TO MENTION THE FINDING OF THE LEARNED CIT(A) GIVEN AT PAGES 5 AND 6 OF THE IMPUGNED ORDER. THE APPELLANT SUBMITTED THAT M/S. RELIANCE INDUS TRIES LTD. (IPCL) HAD REIMBURSED TOTAL FREIGHT CHARGES OF RS.66,15,67 5/- IN THEIR INVOICES FROM HIM AND PAID TO THE TRANSPORTER M/S. RELIANCE LOGISTICS LTD. DURING THE F.YR. 2005-06, AFTER MAKI NG NECESSARY TDS DEDUCTION WHICH HAVE BEEN DEPOSITED UNDER TAN NO.BRDIOO275C. I HAVE GONE THROUGH THE DOCUMENTS FU RNISHED BEFORE ME. AS SEEN FROM THE INVOICE PRODUCED BEFORE ME FOR THE MONTHS OF APRIL 2005 AND MAY 2005, THE TRANSPORTERS NAME IS 5 !% /ITA NO. 2053/KOL/2009 MENTIONED AS DELHI, ASSAM ROADWAYS CORPN. LTD. AND NOT M/S. RELIANCE LOGISTICS LTD. THIS WAS POINTED OUT TO THE LD. AUTHORIZED REPRESENTATIVE. HOWEVER, NO EXPLANATION IN THIS REG ARD WAS GIVEN BY HIM. THE OBJECTIVE OF TDS PROVISIONS IS TO ENSURE T HAT THERE IS PROPER TAX COMPLIANCE BY THE ASSESSEES. SIMILARLY, IN THE CASE OF M/S. GULSHAN SUGARS AND CHEMICALS LTD. THE FREIGHT CHARGES HAVE BEEN REIMBURSED THROUGH SALE INVOICES TO M/S. LIMRA ROADWAYS. AS SEEN FROM FORM NO.16A FILED BY THE APPELLANT PAN/GI R NO. OF THE PAYEE LIMRA ROADWAYS IS NOT AVAILABLE. THE DETAILS OF PAYMENT MADE BY M/S. GUISHAN SUGARS & CHEMICALS LTD. TO LIM RA ROADWAYS CANNOT BE CORRELATED TO THE REIMBURSEMENT FROM THE APPELLANT. THE LD. AR ALSO COULD NOT RELATE THE PAYMENTS. IN THIS SITUATION IT IS VERY DIFFICULT TO ACCEPT THE CONTENTION OF THE APPELLANT THAT FREIGHT CHARGES WERE PAID BY HIM TO THE SUPPLIERS AND THEY DEDUCTED TDS FROM THE PAYMENTS MADE TO TRANSPORT CONTRACTORS. THE APPELLA NT CANNOT TAKE A PLEA THAT HE DOES NOT HAVE THE SCOPE OF DEDUCTION OF TAX AT SOURCE. THE APPELLANT COULD NOT ALSO PROVIDE SUFFICIENT PRO OF, THAT LEGITIMATE TAXES DUE TO THE STATE HAVE BEEN PAID. .. CONSIDERING THE FACTS OF THE CASE BEFORE US AND THE ABOVE FINDING OF THE LEARNED CIT(A), WE ARE OF THE CONSIDERED VIEW THAT THE ASSE SSEE WAS LIABLE TO DEDUCT TDS AS PER SECTION 194C OF THE ACT IN RESPECT OF FREIGH T CHARGES PAID; AND SINCE THE ASSESSEE HAS FAILED TO DEDUCT TDS IN RESPECT THEREO F, THERE IS NO INFIRMITY IN THE ORDER OF THE LEARNED CIT(A) IN CONFIRMING THE ACTIO N OF THE ASSESSING OFFICER TO MAKE THE DISALLOWANCE OF THE SAID AMOUNT RS.69,57,9 75 AS PER SECTION 40(A)(IA) R.W.S. 194C OF THE INCOME-TAX ACT,1961. HENCE, GROU ND NO.1 OF THE APPEAL TAKEN BY THE ASSESSEE IS DISMISSED. 3. IN GROUND NO.2 OF THE APPEAL, THE ASSESSEE HAS D ISPUTED THE ORDER OF THE LEARNED CIT(A) CONFIRMING THE DISALLOWANCE OF RS.3, 47,375 OUT OF FREIGHT AND DELIVERY CHARGES ON THE GROUND THAT THE ASSESSEE W AS LIABLE TO DEDUCT INCOME TAX AS PER PROVISIONS OF SECTION 194C OF THE INCOME-TAX ACT,1961. 3.1. FROM THE DETAILS OF LOCAL FREIGHT & DELIVERY C HARGES BILLS, THE ASSESSING OFFICER FOUND THAT THE PAYMENTS TOWARDS LOCAL FREIG HT & DELIVERY CHARGES BILLS OF 6 !% /ITA NO. 2053/KOL/2009 RS.4,06,750 (WRONGLY MENTIONED AS RS.4,06,480 IN TH E ASSESSMENT ORDER) MADE DURING F.Y. 2005-06 FALLS WITHIN THE AMBIT OF SEC.1 94C READ WITH 1 ST PROVISO TO SECTION 194C(3) OF THE INCOME-TAX ACT,1961. SINCE THE ASSESSEE HAS NOT DEDUCTED TDS ON THE SAID PAYMENTS, THE ASSESSING OFFICER DIS ALLOWED THE SAME U/S.40(A)(IA) OF THE I.T.ACT. IN APPEAL, THE LEARNED CIT(A) ACCEP TED THE SUBMISSION OF THE ASSESSEE THAT THE AMOUNT OF RS.59,375 IS PART OF PA YMENT MADE TO M/S. FREIGHT CARRIER AMOUNTING TO RS.80,745. THEREFORE, THE LEAR NED CIT(A) DELETED THE ADDITION TO THE EXTENT OF RS.59,375 AND HAS CONFIRM ED THE ADDITION OF THE BALANCE AMOUNT OF RS.3,47,375. 3.2. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATERIAL ON RECORD. AT THE TIME OF HEARING, THE LEARNED AR OF THE ASSESSEE REF ERRED TO PAGE 50 OF THE PAPER BOOK, WHEREIN DETAIL LIST OF LOCAL FREIGHT & DELIVE RY CHARGES PAID TO EIGHT PARTIES FOR THE YEAR 2005-06 IS GIVEN, NAMELY, (1) ALOKNATH TRANSPORT .. RS.44,900 (2) PARIMAL SHAH. .. RS.33,000 (3) BABUL SEN. .. RS.32,400 (4) SAHA CARRYUING CENTRE .. RS.46,000 (5) KALIMATA ROADWAYS CORPN. .. RS.35,100 (6) BALARAN SHAH. .. RS.28,300 (7) SREERAM ROADWAYS, .. RS.46,930 (8) M.S.FREIGHT CARRIERS. .. RS.80,745 ______________ RS. 3,47,375 ______________ FROM THE SAID LIST, WE FIND THAT EACH OF THE PAYMEN TS MADE, ON DIFFERENT DATES DURING THE FY RELEVANT TO THE ASSESSMENT YEAR UNDER CONSIDERATION, TO PARTIES AT SL.(1) TO (7) ARE OF THE PAYMENTS LESS THAN RS.20,0 00 AND AGGREGATE PAYMENTS TO EACH OF THOSE PARTIES DOES NOT EXCEED RS.50,000 DUR ING THE FY. THE LEARNED DR 7 !% /ITA NO. 2053/KOL/2009 HAS NOT DISPUTED THIS FACT ON RECORD. THEREFORE, WE AGREE WITH THE LEARNED AR OF THE ASSESSEE THAT THE PROVISIONS OF SECTION 194C HA S NOT BEEN VIOLATED BY THE ASSESSEE FOR NON-DEDUCTION OF TDS FROM THESE SEVEN PARTIES LISTED AT SL.NOS.(1) TO (7) HEREIN ABOVE. THEREFORE, THE DISALLOWANCE OF RS .2,66,630 (RS.3,47,375 RS.80,745) I.E., THE TOTAL PAYMENTS MADE TO THE ABO VE SEVEN PARTIES MADE U/S.40(A)(IA) IS NOT VALID AS THE ASSESSEE IS NOT R EQUIRED TO DEDUCT TDS U/S.194C FOR PAYMENTS MADE TO EACH OF THEM. HENCE, WE DELETE THE SAID DISALLOWANCE OF RS.2,66,630. 3.3. HOWEVER, AS REGARDS TO PAYMENT MADE TO PARTY LISTED AT SL.NO. (8),NAMELY, M.S.FREIGHT CARRIERS, THE LEARNED AR OF THE ASSESSE E DID NOT DISPUTE THE FACT THAT THE ASSESSEE HAS MADE THREE PAYMENTS OF RS.8,095, R S.59,375 AND RS.13,275 AS AGAINST THREE DIFFERENT BILLS ALL DATED 5.1.2006, T HUS TOTALING TO RS.80,745. WE OBSERVE THAT NOT ONLY AGGREGATE PAYMENT MADE BY THE ASSESSEE TO THE ABOVE PARTY, NAMELY, M.S.FREIGHT CARRIERS EXCEEDS RS.50,000 IN T HE RELEVANT FY BUT EVEN ONE OF THE PAYMENT OF RS.59,375 IS EXCEEDING RS.20,000. THEREFORE, THE ASSESSEE WAS REQUIRED TO DEDUCT TDS AS PER SECTION 194C OF THE A CT. THE LEARNED AR OF THE ASSESSEE SUBMITTED THAT THE SAID PARTY STATED THAT NO TDS WAS TO BE DEDUCTED AS THE PAYEE HAD OBTAINED EXEMPTION; AND THE ASSESSEE ON T HE BASIS OF VERBAL INFORMATION DID NOT DEDUCT TDS ON THE AMOUNT PAID TO IT. HOWEVE R, THE SAID PARTY LATER ON GAVE A CERTIFICATE FROM THE ITO, A COPY OF WHICH IS PLAC ED AT PAGE 82 OF THE PB AND AS PER SAID CERTIFICATE, TDS IS TO BE DEDUCTED AT A LO WER RATE I.E., @0.05% AND EDUCATION CESS AS APPLICABLE IF ANY, IN THE RELEVAN T FY. THE LEARNED AR OF THE ASSESSEE SUBMITTED THAT THE TOTAL TDS ON THE SAID A MOUNT OF RS.80,745 COMES TO RS.41 ONLY AND THEREFORE, THE DISALLOWANCE OF THE T OTAL AMOUNT OF RS.80,745 IS NOT JUSTIFIED AS AGAINST THE MAXIMUM LIABILITY OF RS.41 TOWARDS TDS. HOWEVER, THE LEARNED DR JUSTIFIED THE ORDERS OF THE AUTHORITIES BELOW AND SUBMITTED THAT ASSESSEE FAILED TO COMPLY WITH THE PROVISIONS OF SE C.194 OF THE ACT PRIMA FACIE . ON CONSIDERATION OF THE SAID CERTIFICATE PLACED AT PAGE 82 OF THE PB AND THE FACTS BEFORE US, SINCE THE ASSESSEE HAS FAILED TO DEDUCT TDS ON THE PAYMENT OF RS.80,745 PAID TO M.S.FREIGHT CARRIERS, WE HOLD TH AT THE SAID AMOUNT HAS TO BE 8 !% /ITA NO. 2053/KOL/2009 DISALLOWED AS PER SECTION 40(A)(IA) OF THE ACT. ACC ORDINGLY, WE CONFIRM THE DISALLOWANCE U/S.40(A)(IA) OF THE ACT TO THE EXTENT OF RS.80,745. 4. IN VIEW OF THE ABOVE, GROUNDNO.2 OF THE APPEAL I S ALLOWED IN PART BY RESTRICTING DISALLOWANCE OF RS.80,745 AS AGAINST RS .3,47,375 CONFIRMED BY THE LEARNED CIT(A). 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED IN PART. 2 #1 $3# 4 3' 5 26 THIS ORDER IS PRONOUNCED IN OPEN COURT ON DT.19.3.2 010 SD/- SD/- ( (( ( . . . . . .. .' ' ' ') )) ) , , , , #$ , (B.C.MEENA), ACCOUNTANT MEMBER. ( . . . . . . . . ), B.R.MITTAL, JUDICIAL MEMBER ( (( ( 7$ 7$ 7$ 7$ ) )) ) DATE: 19.3.2010 #1 / -8 9#8': - COPY OF THE ORDER FORWARDED TO: 1 . +, / THE APPELLANT : HIGHTENSION SWITCHGEARS (P) LTD., 32, EZRA STREET,KOLKATA 700 001 2 -.+, / THE RESPONDENT : INCOME-TAX OFFICER, WARD 5(4), KOLKATA. 3 . 1' / THE CIT, 4 . 1' ( )/ THE CIT(A), 5 . @5 -' / DR, KOLKATA BENCHES, KOLKATA 6 . GUARD FILE . .8 - / TRUE COPY , #1'3 / BY ORDER , B !C /DEPUTY REGISTRAR . ( 2#DEF' G7 /H.K.PADHEE) HI 'JC K / SNR.PRIVATE SECRETARY.