R.R. Caryying Corporation v. Asstt. CIT
INCOME TAX ACT, 1961
Assessment - Additions to Income -Undisclosed sales
Held: Where, difference arose between books of accounts and as per TDS certificate, then, only the embedded portion of profits in undisclosed sales was to be taken into consideration and, accordingly, addition was to be made.
Income-tax Act, 1961, Section 143
A.Y.:2005-06
Decision: Matter remanded.
INCOME TAX ACT, 1961
Tax deduction at source - Under section 194 -Payment made to Contractors/Sub-contractors
Assessee, a transport contractor, and in addition, he had own trucks, was engaged other truck-owners to execute transportation work on as and when basis without any privacy of contract but on facts there was neither any oral nor written contract between assessee and transporters, so, section 194C had no application to payments made by assessee to such transporters. The issue arose as to whether assessee was liable to deduct tax under section 194C from payments made to the transporters. Held: Assessee was a transporter executing various contracts by engaging its own vehicles and transporters vehicles and there was nothing on record to suggest that any contract existed between assessee and alleged transporter as sub-contractor. There was neither written nor oral agreement in this regard. AO had not made out the case that alleged sub-contractor had been engaged on some definite terms and conditions for executing work of the assessee. Basically, the assessee had engaged different transporters for executing its different work. Since, assessee was not liable to deduct tax under section 194C, therefore, disallowances made by AO was not justified by invoking provisions of section 40(a)(ia).
Income-tax Act, 1961, Section 194
A.Y.:2005-06
Decision: In favour of assessee.