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2019 (4) TMI 2000 - AT - Income TaxTDS u/s 172 - Disallowance u/s. 40(a)(ia) - payments made by the assessee were shipping agent of any non-resident ship owners or charters in respect to which provision of sec. 172 of the Act applies - HELD THAT:- The details were filed on 08.10.2014 before the Ld. CIT(A) who in turn have called for the remand report from the AO. The expenses incurred on behalf of the assessee did not had any service fee in it to the payee, so, there is no component of income to the parties to whom payments were made by assessee. Since the assessee filed the complete details of the reimbursement and copies of the respective invoice raised by such parties along with the supporting invoices along with the submission dated 08.10.2014, the Ld. CIT(A) has accepted the submission of the assessee that the expenses/payments made by the assessee wherein the nature of reimbursement with no element of income which is chargeable to tax and also no part of such payment was made by the assessee towards carrying of any work/service by the said parties. The payments were in the nature of taxes etc. which was paid by the respective parties on behalf of the assessee where no withholding of taxes is necessary. CIT(A) had taken note in the case of Hightension Switchgears Private Limited Vs. CIT, [2016 (7) TMI 340 - CALCUTTA HIGH COURT] wherein it was held by the Hon’ble High Court that TDS is not required to be deducted on the amount reimbursed to the suppliers/vendor. Taking note of the sample invoice filed before us, we agree with the view taken by the Ld. CIT(A) that the expenses/payments were in the nature of reimbursement with no element of income chargeable to tax in India or no part of such payment was made towards carrying on any work by the parties /vendors and, therefore, taxes need not to be withheld by assessee on such payments so, we confirm the decision of the Ld. CIT(A). Therefore, this ground of appeal of revenue is dismissed.
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