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2013 (7) TMI 875 - ITAT KOLKATATDS u/s 194C - Disallowance of reimbursement of expenses - CIT(A) deleted the disallowance - Held that:- Payments made to agent for final settlement of bills at Orissa, i.e., payment made to NLP as an agent in pursuance of agreement for supply of trucks are merely reimbursement. The assessee has claimed total freight charges at ₹ 1,45,14,602 including this amount of reimbursement of ₹ 72,83,181 and the assessee has already deducted the tax at source under section 194C of the Act on contractual payment of freight, i.e., total freight at ₹ 1,45,14,602 and nothing is to be deducted from reimbursement. These were never claimed as expenditure by the assessee and once the assessee has not claimed the expenditure qua this reimbursement, the assessee is not liable to tax deduction at source under section 194C of the Act. Further, the Assessing Officer has wrongly made disallowance by holding that the expenses incurred are not for the purpose of business rather according to him, these are inflated expenses booked by the assessee. This finding of the Assessing Officer is erroneous for the reason that the payments made of reimbursement of expenses are purely for business expenses. - CIT(A) rightly deleted the addition - Decided against Revenue.
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