The Income Tax Appellate Tribunal (ITAT), Delhi Bench has held that mandatory declaration of the number of lorry u/s 194C (6) is applicable prospectively from 1st June 2015 onwards.
The appellant, Shesh Dhar Chaube runs a Proprietary business Gayatri Logistics. During assessment proceedings, the Assessing Officer disallowed an amount of Rs.3,37,10,410/- being 30% of the total freight payment, under Section 40(a)(ia) of the Act, alleging that the assessee has not filed the list of freight payments made and secondly no declaration from the lorry owners to the effect that they own only 10 or fewer goods carriages at any time were filed. The CIT (A) dismisses the appeal. Hence the appellant approached the ITAT.
The Counsel for the appellant submitted that in reply filed by the assessee, after giving the reason for non-deduction of TDS, has stated the details of freight paid along with PAN are enclosed. About the allegation of non-declaration from the lorry owner about the number of vehicles owned by them, the condition was inserted in sub-section (6) to Section 194C by the Finance Act, 2015 with effect from 1st June 2015. The assessment year under consideration is 2015- 16 which pertains to F.Y. 2014-15 and the amendment having been brought from the next financial year the assessee couldn’t comply with the condition as to the filing of declaration.
The Coram of Dr. B. R. R. Kumar, Accountant Member, and Mr. Yogesh Kumar US, Judicial Member has held that the relevant financial year under consideration is 2014-15, therefore, the provisions of this amendment do not apply to the present case.
Adv. Ms. Rano Jain and Ms. Mansi Jain, CA appeared on behalf of the appellant and Mr. Lalit Kishore appeared on behalf of the respondent.
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