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2016 (3) TMI 583 - AT - Income TaxTDS u/s 194C - Disallowance made u/s. 40(a)(ia) - non tds on freight charges - Held that:- We find that the assessee had only made purchase of goods and there was no freight charges incurred by the assessee on these purchases, which is evident from the ledger account as filed at pages 33-39 of the paper book. We also verified the sample invoices, that are kept at pages 40-47 of the paper book containing the freight charges and the details of the freight charges payable by the assessee on behalf of the said suppliers [M/s. Sangam and M/s. Ganpati Road Lines]. Hence, we are satisfied that the provisions of section 194C are not at all attracted to the present facts of the case and consequently, the disallowances/additions made u/s. 40(a)(ia) is not warranted. - Decided in favour of assessee In respect of freight charges paid to Shri Gautom Majee we deem it fit and appropriate to set aside the issue to the file of the ld.AO to decide the same made u/s. 40(a)(ia) in the light of applicability of second proviso to section 40(a)(ia) as mentioned herein above and in the light of said decision of the Hon’ble Delhi High Court in the case of Ansal Land Mark Township (P) Ltd (2015 (9) TMI 79 - DELHI HIGH COURT). The assessee is at liberty to adduce fresh evidences, if any, to substantiate its contentions. - Decided in favour of assessee by way of remand Disallowance of interest - Held that:- Considering balance sheet and the business balance sheet of the assessee, that the assessee has borrowed monies from said two private individuals on his personal account in the assessment year 2004-05 and invested the same in his proprietary concern of the assessee, which is evident from the pages 53-55 of the paper book. Hence, it is proved beyond doubt that borrowings made by the assessee are only for the purpose of his business. Accordingly, interest thereon is squarely allowable as deduction. - Decided in favour of assessee
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