Assessee was engaged in the business of clearing and forwarding agency for ACC Ltd. Assessee made payment towards handling charges to three people who in turn paid labour charges to multiple labourers. AO disallowed by the amount paid due to non deduction of tax. The CIT(A) refused to accept the evidence produced by the assessee. Hight Court upheld Tribunal’s order of remanding the matter back to the CIT(A) for re-examination. (IT A No. 407 of 2010 dt. 31-08-2020) (AY.2006-07)
C.S. Raghoji (Bellary) v. DCIT (2020) 119 taxmann.com 143 /(2021) 277 Taxman 61 (Karn)(HC)
S. 40(a)(ia) : Amounts not deductible – Deduction at source – Handling charges paid to persons for in turn paying multiple labourers – TDS provisions not applicable – matter remanded back to CIT(A) for re-examining evidence which he refused to accept .