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2014 (11) TMI 1015 - AT - Income TaxTDS u/s 194C - disallowance of payment made to C & F agent M/s Sachin Cargo Movers u/s 40 (a) (ia) - non deduction of TDS - Held that:- In our considered view the nature of between assessee & M/s. Sachin Cargo Movers, C&F Agent, was for reimbursement of expenses. Besides, the TDS thereon has been deducted by the agent as mentioned above. By now, it has been settled by various Courts that reimbursement of expenses are not liable for deduction u/s 40(a)(ia) of the Act. In any case the agent has deducted the TDS a fact not disputed by revenue, in this eventuality also the case laws cited by the ld. AR supports this proposition. In view thereof, we hold that the expenses paid to M/s. Sachin Cargo Movers, C&F Agent, being for reimbursement of expenses cannot be disallowed u/s 40(a)(ia) of the Act. Computation of deduction u/s 10BA - Held that:- In the earlier years assesses activities have been held to be eligible for deduction u/s 10BA. Respectfully following the ITAT judgement of this Bench in the case, we hold that the assessee entitled to deduction u/s 10BA of the Act. Deduction u/s 10BA is the eligible taxable profits from the industrial undertaking, if any disallowance of expenditure is made it increases the eligible undertakings taxable income. Ld. CIT(A) has rightly held that after any disallowance of expenditure the resultant income of the industrial undertaking will be eligible for deduction u/s 10BA. We find no infirmity in the order of ld. CIT(A) on this issue. Rejection of books of account u/s 145(3) - addition sales outside the books of account - CIT(A) deleted the addition - Held that:- As no infirmity in the order of the ld. CIT(A) inasmuch much there is no evidence on record to suggest any sales outside the books of account. The books of account are rejected because of non-maintenance of detailed particulars of closing stock. Consequently, the assessee's gross profit rate declared at 14.11% is adopted at 17.20% by ld. CIT(A) which is commensurate to the past history of the assessee. In view thereof, we see no infirmity in the order of the ld. CIT(A) on this issue which is upheld. Disallowance of C&F Agent - CIT(A) allowed the claim - Held that:- The C&F Agent expenditure is a controlled expenditure inasmuch as it is relatable to particular export consignments. The AO has not pointed out any particular item of expenditure or export consignments or any mismatch therein. In view thereof, we uphold the order of the ld. CIT(A) and hold that relief has been given just and proper consideration.
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