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2015 (7) TMI 319 - AT - Income TaxDisallowance u/s 40(a)(ia) - Non deduction of TDS - In so far as air liting is concerned, the goods are transported through GBR Freight Forwarders Private Ltd and in so far as shipments are concerned, they are through Balaji Shipping Services - Held that:- As far as GBR Freight Forwarders (P) Ltd is concerned, assessee has made a short deduction. Neverthless, the decision in the case of CIT vs. S.K. Tekriwal (2012 (12) TMI 873 - CALCUTTA HIGH COURT) is applicable and hence no disallowance can be made invoking the provisions of section 40(a)(ia) of the I.T. Act. With respect to the payments made to Balaji Shipping Services, the amounts paid are only towards reimbursement of shipment charges and therefore, no tax was deducted at source. Assessee did not attract the provisions of section 40(a)(ia) of the Act as reimbursement of expenses do not consist the income of the recipient and the payments are not governed by the provisions of section 194C of the Act. We also rely on the decision of the Coordinate Bench in the case of Ushodaya Enterprises [2015 (1) TMI 510 - ITAT HYDERABAD ] Decided in favour of assessee.
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