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2015 (2) TMI 61 - AT - Income TaxNon deduction of TDS on clearing and forwarding charges - disallowance u/s 40(a)(ia) - assessee’s submission that the amount paid to C & F agents includes the expenditure which has been reimbursed to the clearing and forwarding agents and there is no element of profit in it - Held that:- We find that there is no finding of Ld. CIT(A) that the amount paid by the assessee was not in the nature of reimbursement but on the contrary he has held that there cannot be any exemption from TDS even in case of reimbursement. As find that the issue of disallowance u/s. 40(a)(ia) amount paid to the clearing and forwarding agents with respect to the reimbursable expenditure was also before the Co-ordinate Bench Tribunal in the case of Gujarat Narmada Valley Fertilizer Company Ltd [2015 (2) TMI 1 - ITAT AHMEDABAD] held that on pure reimbursement of expenses no TDS is deductable. Against the aforesaid order of Tribunal, the matter was carried before Hon’ble Gujarat High Court by the Revenue who accepted the finding of Tribunal and dismissed the appeal of Revenue [2014 (4) TMI 235 - GUJARAT HIGH COURT]. Considering the aforesaid facts, we are of the view that the assessee’s contention that the expenditure which are on account of reimbursement and on which no TDS has been deducted needs to be re-examined de-novo. We therefore remit the issue to the file of AO to consider the submissions of the assessee and thereafter decide the issue in accordance with law and if the expenditure incurred by the assessee is on account of reimbursement, the same be allowed. The assessee is also directed to furnish all the required information to the AO so as to enable him to decide the issue. - Decided in favour of assessee for statistical purposes.
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