2014 (1) TMI 1708 - SC - Income Tax

Disallowance u/s 40(a)(ia) - Reimbursement of CHA charges paid to C & F agent non tds -Held that - HC order upheld 2014 (4) TMI 235 - GUJARAT HIGH COURT - the expenses were incurred by the agent on behalf of the assessee for transportation and other charges which has been spelt out in the bill itself including the commission to the agent - the relation between the assessee and the agent is principal and agent - so far as the obligation to deduct tax at source from the payment of transport charges and other charges is concerned the same was complied with by the agent who had made payment on its behalf - Thus deleting the disallowance confirmed Decided against Revenue.