COMMISSIONER OF INCOME TAX Vs. U.BHASKARAN

JUDGEMENT

(1.) THIS appeal is filed by the Revenue challenging the order of the Income Tax Appellate Tribunal 'B' Bench, Chennai, dated 9.9.2011 made in I.T.A.No. 2128/Mds/2010 for the assessment year 2005 -2006, raising the following questions of law:

(2.) 1. The facts in a nutshell are as under: The assessee is carrying on transport business and has filed return of income for the assessment year 2005 -2006 on 24.10.2005 disclosing an income of Rs.11,13,069/ - and the return was processed under Section 143(1) of the Income Tax Act. The case was selected for scrutiny and notice under Section 143(2) of the Act was issued and after hearing the assessee's representative, the assessment was completed by disallowing the payment to sub -contract business of hiring, plying goods carrier. The Assessing Officer disallowed Rs.1,52,87,975/ - under Section 40(a)(ia) of the Act for non deduction of TDS under Section 194C of the Act.

(3.) A perusal of the order of the Tribunal shows that the Tribunal has primarily relied upon the decision of this Court in Commissioner of Income Tax v. Poompuhar Shipping Corporation Ltd., : (2006) 282 ITR 3 (Madras) and held as under: