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2011 (5) TMI 300 - ITAT, NEW DELHIDisallowance - Deduction of tax at source - Clearing and forwarding charges - The disallowance of 8,84,881/-, Ld. Commissioner of Income Tax (Appeals) has given a finding that no payments had been made to any party/agent in excess of Rs. 50,000/- Hence, the said payments are not subject to TDS, as per the provisions of section 194C - Thus, addition of Rs. 8,84,881/- cannot be sustained. Payments of freight and cartage outward - CBDT circular no. 71 dated 8.8.1995 had provided that TDS is required to be made only in the cases where bills are raised for gross amount inclusive of professional fees as well as reimbursement of actual expenses and accordingly no TDS is required to be made when bills are raised separately by the agent only for reimbursement of actual expenses incurred by it - Accordingly, no TDS is required to be raised - Thus, addition of Rs. 30,66,703/- cannot be sustained.
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