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2015 (1) TMI 56 - AT - Income TaxTwo payments made by assessee disallowed u/s 40(a)(ia) – Non deduction of TDS on clearing and forwarding charges - Held that:- CIT(A) was rightly of the view that the amount of ₹ 18,16,637/- is nothing but reimbursement of expenses incurred by the payee on behalf of the assessee - these amounts did not constitute income of the clearing agent and no TDS was required to made - therefore, the provision of Section 194C will not be applicable in respect of reimbursement of expenses - Circular No.715 dated 08.08.1995 issued by CBDT on “Clarifications on various provisions relating to tax deduction at source regarding changes introduced through Fiannce Act, 1995” will not have application on the present facts as the bills are raised separately for reimbursement of expenses – the same has been decided in INCOME TAX OFFICER. Versus DR. WILLMAR SCHWABE INDIA PVT. LTD. [2005 (3) TMI 398 - ITAT DELHI-D] thus, CIT(A) is justified in deleting the disallowance – Decided against revenue. Commission payments made on sales – Held that:- CIT(A) rightly deleted the disallowance for the reason that the assessee has deposited the tax deducted within time stipulated as per the provision of Section 40(a)(ia) - the tax has been paid well before the due date furnishing of the return u/s 139(1) - proviso 1 to Section 40(a)(ia) is applicable - the proviso though it is applicable w.e.f. 01.04.2010, it has been held the proviso to be retrospective – the order of the CIT(A) in deleting the disallowance of ₹ 9,00,300/- is upheld – Decided against revenue.
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