Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (4) TMI 343 - AT - Income TaxDisallowance u/s 40(a)(ia) - Held that :- As decided in Merilyn Shipping & Transports vs ADIT, Range-I, Visakhapatnam [2012 (4) TMI 290 - ITAT VISAKHAPATNAM] that section 40(a)(ia) is applicable only to expenditure which is payable as on 31st March of every year and cannot be invoked to disallow the amounts which are already been paid during the previous year, without deducting tax at source – Decided in favor of assessee. Addition made u/s 40(a)(ia) - assessee contended that the expenses represented only the reimbursement of the customs clearance expenses incurred by both the parties & does not represent the payment being made for the services rendered by the clearing agent - Held that:- It is a fact that if the assessee reimbursed the expenses towards freight incurred on its behalf under an agreement for which separate bills is raised, and to such payments the provision of section 194 of the I.T.Act is not attracted. See INCOME TAX OFFICER Versus DR. WILLMAR SCHWABE INDIA PVT. LTD. [2005 (3) TMI 398 - ITAT DELHI-D] - As when it is not disputed that the said amount has been incurred for reimbursement of the expenses deletion of the addition confirmed - in favor of assessee.
|