CHOUDHARY TRANSPORT COMPANY Vs. INCOME TAX OFFICER
SUPREME COURT OF INDIA
Choudhary Transport Company
INCOME TAX OFFICER
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DINESH MAHESHWARI, J. -
(1.)By way of this appeal, the assessee-appellant has called in question the order dated 15.05.2009 passed in Income Tax Appeal No. 164 of 2008 whereby, the High Court of Judicature for Rajasthan at Jodhpur has summarily dismissed the appeal against the order dated 29.08.2008 passed in ITA No. 117/JU/2008 by the Income Tax Appellate Tribunal, Jodhpur Bench at Jodhpur; and thereby, the High Court has upheld the computation of total income of the assessee-appellant for the assessment year 2005-2006 with disallowance of payments to the tune of Rs. 57,11,625/-, essentially in terms of Section 40(a)(ia) of the Income Tax Act, 1961 for failure of the assessee-appellant to deduct the requisite tax at source.
 Hereinafter referred to as 'the Act of 1961' or simply 'the Act'.
 Tax deducted at source' being referred as TDS'
(2.)We may take note of the relevant factual and background aspects of the case while keeping in view the root point calling for determination in this appeal, that is, as to whether the payments in question have rightly been disallowed from deduction in computation of total income of the appellant?
Relevant factual and background aspects: the impugned order of assessment
(3.)In a brief outline of the relevant factual aspects, it could be noticed that the assessee-appellant, a partnership firm, had entered into contract with M/s Aditya Cement Limited, Shambupura, District Chittorgarh for transporting cement to various places in India. As the appellant was not having the transport vehicles of its own, it had engaged the services of other transporters for the purpose. The cement marketing division of M/s Aditya Cement Limited, namely, M/s Grasim Industries Limited, effected payments towards transportation charges to the appellant after due deduction of TDS, as shown in Form No. 16A issued by the company.
 Hereinafter also referred to as "the consignor company" or "the company".
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