THE COMMISSIONER OF INCOME TAX Vs. TABARAK

JUDGEMENT

(1.) In this appeal following substantial questions of law have been raised:

(2.) This matter has been taken up for its final hearing by the consent of the learned counsel for both the sides and have argued out the case at length.

(3.) Counsel for the appellant on behalf of the Commissioner Income Tax, Jamshedpur has submitted that the respondent has claimed deduction of Rs. 98,76,419/-, which is paid to the sub contractor for transportation. Similarly, the respondent-assessee has also claimed deduction of Rs. 17,60,600/- under the heading of "loading and unloading charges". These deductions not having been allowed, appeal was preferred by the respondent before the Commissioner, Income Tax (Appeals) Jamshedpur bearing Appeal No. 525/JSR/2011-12. Which was dismissed by the Commissioner of Income Tax vide order dated 31st December, 2012 mainly on the ground that the assessee has not deducted TDS, as required u/s. 194C of the Income Tax Act, 1961 and, therefore, deductions are not permissible u/s. 40(a)(ia) of the Income Tax Act, 1961. Against this order, the respondent had approached Income Tax Appellate Tribunal, Ranchi Circuit Bench, Ranchi. The appeal preferred by the assessee bearing I.T.A. No. 16/Ran/2013 for the assessment year 2009-10 having been allowed by Income Tax Appellate Tribunal, Ranchi Circuit Bench, Ranchi vide order dated 3rd May, 2013, the Income Tax Department has preferred the present Tax Appeal raising the aforesaid substantial questions of law.