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2014 (3) TMI 571 - ITAT COCHINDisallowance of purchase amount - Genuineness of the suppliers was not proved - Claim of receipt of goods by the assessee was not proved – Held that:- The CIT(A) was satisfied with the genuineness of the suppliers on the basis of various documents furnished by the assessee and accordingly deleted the disallowance – the CIT(A) has not examined the second reason at all viz., the claim of receipt of goods by the assessee – thus, the action of the CIT(A) is not correct - CIT(A) should have considered both the reasons before coming to a conclusion - the second reason cited by the assessing officer is more relevant than the first reason - even if the assessee is able to prove the genuineness of the suppliers, still the disallowance is possible if the assessee is not able to prove that it has actually received the goods – thus, the second reason cited by the assessing officer and the explanations given by the assessee needs to be examined at the end of the CIT(A) – the order of the CIT(A) set aside and the matter remitted back for examination – Decided in favour of Revenue. Disallowance u/s 40(a)(ia) of the Act – TDS not deducted on payment made to C& F agents - Held that:- The C & F agent is seeking reimbursement of expenditure incurred on Customs Duty, Clearing and Forwarding, Port dues, Transporting charges etc. on actual basis - the payments relating to the above said expenses is made on behalf of the assessee - the assessee is authorizing the C & F agent to incur the expenses on its behalf - the break up details given in the single consolidated bill raised by the C & F agents should be considered as separate bills relating to (a) reimbursement of expenses and (b) charges for clearing quoted by the Agent - the applicability of TDS provisions on "reimbursement of expenses" should be considered separately in respect of each of the item and it cannot be clubbed with the charges levied by the C & F agent – CIT(A) did not examine the break-up details of the bills raised by the C & F agents – thus, the matter is remitted back to the CIT(A) for fresh examination of the applicability of TDS provisions on the charges paid to C & F agents and also on the expenses reimbursed – Decided in favour of Assessee.
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