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2014 (4) TMI 314 - AT - Income TaxDeletion made u/s 40(a)(ia) of the Act – Non-deduction of tax – Payments made to various parties – Held that:- Ocean freight charges, air freight charges and in land charges are covered by the circular of the CBDT bearing no. 723 dated 19.09.1995, according to which no TDS is to be deducted on such payments – the decision ITO Vs. Freight System (India) (P) Ltd. [2005 (10) TMI 229 - ITAT DELHI-F] followed - payment of ocean freight is not liable for tax deduction at source u/s 194(c) in view of provisions of section 172. Inland charges u/s 172(8) of the Act - the decision in DCIT Vs. Hasmukh J. Patel [2011 (3) TMI 353 - ITAT, Ahmedabad] followed - the payments made to shipping agents of non- residents is nothing but reimbursement of charges which has been clarified by the CBDT circular no. 723 which states that the provisions of section 172 would apply in such cases and no deduction of taxes required as per section 194(c) - CIT(A) has correctly appreciated the facts and position of law in deleting the additions made by the AO – thus, there is no infirmity in the order of the CIT(A) – Decided against Revenue. Admission of additional evidence in violation of Rule 46A of the Rules – Held that:- The contention of the Revenue could not be accepted because revenue could not specifically point out the additional evidences relied by the CIT(A) – Decided against Revenue.
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