TDS Not Paid

 Only way to escape is illegitimate way, since statutory provisions will Make AO disallow all expenses U/s 40(a)(i). So you fix a deal with AO . i hope you can understand this

santosh , being a CA student its not ethical to advise people in this fashion , or by asking them to offer bribes , KIndly remember this that you are into a profession which serves at the highest level of intregrity .

Clearing and forwarding charges are subject to TDS u/s 194C . I think the 14lakhs which you have paid includes the freight amount as well , It should be noted that TDS is only to be deducted on service charges of the CHA ( which is generally raised seperately and freight bill is raised seperately ) Check the service bill of the CHA , i think it wont be more than 1-1.5 laks .

As you have not deducted tax on that amount , it will be disallowed . you can claim the expense next year after paying due taxes .

As regards to penalty , i think you can always pray/appeal for penalty if there was a reasonable cause . 

Santosh. If you start reading all the penal sections of IT Act starting from section 270 onwards, you will find a provision that any person whether CA or accountant or even any employee of an assessee can be prosecuted if he is advising ways of evading taxes to the assessee. This draconian provision is what there was a hue and cry about and the called it POTA for CA.

Therefore as a profession of which you are becoming a part, please respect it and do not post such opinions or advice.

I am not a CA but my son is attempting to acquire the qualifications and I would like the profession to get back its lost glory.

From the situation vis a vis Government and Assessees, I always find that CAs have of late gained too much disrespect vis a vis lawyers who are still respected as a profession. The problem is too much wrong certifications by some members of the profession who have got the profession to some disrepute. Remember that a CA is always at a disadvantage because although he is an independent office of profit he is still considered an extension of the assessee and any mistakes or wrong doing on his part is a blemish on his records because he has signed and certified many things. On the other hand lawyers get away even with certifying xeroxes of false documents as true copies as they are not certifying any financial statements and in the above instance they can always plead loss of original after they verified it.

The writing on the wall is that when you are already facing this handicap, do not make matters worse like this.