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2015 (3) TMI 636 - AT - Income TaxReceipts not shown by the assessee - receipt on account of freight alleged to be short accounted - CIT(A) deleted the addition - Held that:- Regarding the method of accounting of the assessee, it is observed that he has examined the books of accounts maintained by the assessee and the receipt of freight by the assessee has been credited in respective tanker accounts and in the accounts of the parties who had made payment to the assessee. He has also noted that such freight amount was payable to the tanker owners and the same was paid from time to time. This is the objection of CIT(A) that if such receipt on account of freight alleged to be short accounted for by the assessee is added as income of the assessee then corresponding deduction on account of expenses has to be allowed, which has not been allowed by the Assessing Officer. He has noted that such expenses were in fact not incurred by the assessee but by the tanker owners. No such fact has been brought on record by the Assessing Officer that the assessee was in fact not working as commission agent but as a transport operator. Hence, even if the receipts as per TDS certificate are to be considered as income of the assessee then the payment made by the assessee has to be allowed as expenses and it will not result in addition in the hands of the assessee. - Decided in favour of assessee. Non deduction of TDS on payments made to various parties - CIT(A) deleted the addition - Held that:- There is no privity of contract of carriage of goods between assessee and his clients and therefore, the assessee was only facilitator and therefore, not required to deduct TDS u./s 194C of the Act. Respectfully following the judgment of Hardarshan Singh [2013 (1) TMI 314 - DELHI HIGH COURT] we hold that the assessee in the present case was not required to deduct TDS and therefore, disallowance made by Assessing Officer in respect of payment of ₹ 22,69,756/- is not proper and the same was rightly deleted by CIT(A) - Decided in favour of assessee.
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