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6. The learned DR, on the other hand, relied upon the action of the AO on the issue of validit y of usurption of jurisdiction under s.147 of the Act. It was submitted that the assessee has incurred staggering amount of expenses pegged at Rs.2,19,94,327/- on account of loading charges/unloading charges and labour expenses. The assessee has neither deducted TDS under s.194C of the Act on such payments nor filed an y evidence as obligated under the provisions codified in Chapter XVII-B of the Act. In the circumstances, the AO has correctl y reopened the assessment in accordance with law after taking necessary approvals of the superior authorit y contemplated under s.151 of the Act. It was thus pleaded that no interference with the order of the C IT(A) is called for on the legal ground raised b y the assessee at this belated stage and not objected to before the C IT(A).

7. The legal issue on validit y of assumption of jurisdiction under s.147/148 is dealt with hereunder.

7.1. The reasons recorded under s.148(2) giving cause for issuance of notice under s.148 is pertinent to determine the jurisdictional issue. Accordingl y, the reasons so recorded b y the AO for reopening the completed assessment is reproduced hereunder:-

T r a n s p o r t C o m p a n y v s . AC I T ] A Y 2 0 1 0 - 1 1 - 5 -

"In the P&L a/c, assessee has debited expense of Rs.1,40,59,105/- under the head 'Loading charges, Rs .63,82,446/- under the head unloading charges and Rs.15,52,776/- under the head of Labour expenses. The assessee has neither deducted TDS u/s 194C nor filed any details in respect of these expense which comes to Rs.2,19,94,327/- 14059105 + 6382446 + 1552776] , which attracts the provision of section 40a(ia) of the I.T. Act, 1961. Al so in column 27(a) of Form No.3CD the auditor has mentioned deduction of tax at source regarding the payment thereof to the credit of Central Govt. under provision of chapter XVII-B but the evidence was not avai lable.

6. The learned DR, on the other hand, relied upon the action of the AO on the issue of validit y of usurption of jurisdiction under s.147 of the Act. It was submitted that the assessee has incurred staggering amount of expenses pegged at Rs.2,19,94,327/- on account of loading charges/unloading charges and labour expenses. The assessee has neither deducted TDS under s.194C of the Act on such payments nor filed an y evidence as obligated under the provisions codified in Chapter XVII-B of the Act. In the circumstances, the AO has correctl y reopened the assessment in accordance with law after taking necessary approvals of the superior authorit y contemplated under s.151 of the Act. It was thus pleaded that no interference with the order of the C IT(A) is called for on the legal ground raised b y the assessee at this belated stage and not objected to before the C IT(A).

7. The legal issue on validit y of assumption of jurisdiction under s.147/148 is dealt with hereunder.

7.1. The reasons recorded under s.148(2) giving cause for issuance of notice under s.148 is pertinent to determine the jurisdictional issue. Accordingl y, the reasons so recorded b y the AO for reopening the completed assessment is reproduced hereunder:-

T r a n s p o r t C o m p a n y v s . AC I T ] A Y 2 0 1 0 - 1 1 - 5 -

"In the P&L a/c, assessee has debited expense of Rs.1,40,59,105/- under the head 'Loading charges, Rs .63,82,446/- under the head unloading charges and Rs.15,52,776/- under the head of Labour expenses. The assessee has neither deducted TDS u/s 194C nor filed any details in respect of these expense which comes to Rs.2,19,94,327/- 14059105 + 6382446 + 1552776] , which attracts the provision of section 40a(ia) of the I.T. Act, 1961. Al so in column 27(a) of Form No.3CD the auditor has mentioned deduction of tax at source regarding the payment thereof to the credit of Central Govt. under provision of chapter XVII-B but the evidence was not avai lable.