- (1.) Heard Shri Manish Mishra, for appellant and Shri R.B. Shukla, learned counsel for respondent.
(2.) This is an appeal filed under Section 260-A of Income Tax Act, 1961 (hereinafter referred to as "Act 1961") arising from judgment and order dated 21.3.2013 passed by Income Tax Appellate Tribunal (hereinafter referred to as "Tribunal") in I.T.A. No.477/Lkw/2011 relating to Assessment Year 2008-09. It was admitted on the following substantial Question of Law as under :- (ii)"Whether the Income Tax Appellate Authority was justified in holding that the expenses incurred by the Assessee amounting to Rs.2,31,11,513/- under head "Payment made of lorry hire charges' is not covered under Section 40(a)(ia) of the Income Tax Act, 1961 as the provisions of Section 194-C of the Income Tax Act, 1961 are not found applicable?"
(3.) The Assessing Officer (hereinafter referred to as "A.O.") vide order dated 30.12.2010 made addition by observing that Section 194-C is applicable in the case in hand on the ground that the Assessee is a Transporter and not Trader, and therefore, giving options, Assessee will not prefer a written contract if perceived as detrimental to his business functions and in case there does exist an oral contract, it becomes a matter of absolute discretion of the two consenting parties and there can be brought nothing on record to prove that there is a contract, if the Assessee or the Contractor, decided to fulfill it or otherwise. In such circumstances, the only relying factors will be the trends of operation of Assessee which will bear a regular pattern of continuous transportation, which is evident in this case, and requires to be aggregated for the purpose of Section 194-C of Act, 1961.;