Dear Sirs,
Our client is a transport contractor.In respect of freight paid to transport sub contractors amounting to about Rs.50 lakhs, it has received forms 15I from truck owners owning not more than 2 goods carriages.
However it has not filed the form 15J with the CIT as required by Rule 29D / Sec 194C.
I wish to know whether the AO can disallow the freight charges of Rs. 50 lakhs u/s.40a (ia).
Thanks in advance
Swami
Dear Swami
No, A.O. Cannot disallowed Rs. 50 lakhs U/S 40 a (ia). As on receipt of form 15I you are not required to deducted TDS and hence question of disallowance U/S 40 a (ia) does not arise. However at the time of assessment your clients should produce all the form collected from truck owner on which tax was not deducted. It is better to file the same before asked by the A.O.
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