Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (11) TMI 660 - AT - Income TaxTDS u/s 194C - amount paid as plant repairs - non deduction of tds - whether the payment made under the head plant repair represents reimbursement of expenses? - Held that:- In our view this agreement is based on the parties having regard to the actual expenses incurred. The processing charges paid is separately billed on which TDS has been deducted. Having regard to the fact that separate bills have been given and based on various Judicial Pronouncements cited by the Ld. AR and having regard to the fact that the revenue has accepted this fact of separate bill is another case as directed by the Jurisdictional High Court. We are of the considered opinion that the assessee is not liable to deduct tax on reimbursement of expenses Addition of cleaning and forwarding charges - CIT(A) has held that M/s. Al Mustafa Agencies were carrying out various services to the assessee for the export of goods such as documentation with customs, registration, insurance, rent and other port dues - Held that:- Nevertheless all the above payment relates to payment to statutory authorities, labourers and others, on behalf of the assessee and none of them accrued to the agent. In our view the above payment will also not be liable to TDS. The Assessing Officer has neither quantified nor clear of the exact charges paid to M/s. Al Mustafa Agencies. In the absence of any material on record, we uphold the view of the Ld. CIT(A) in this regard. Vehicle loan hire charges - CIT(A) has held that hire purchase payment would not come within the meaning of section 194C for the purpose of tax deduction - Held that:- In our view merely because a claim for the hire charges portion has been made in the account, it cannot be stated that such payment are liable to TDS. Further the assessee has been claiming such payment in earlier years also which has been accepted by the department. The legislature thought it fit to introduce Form 26a with effect from 01/04/2013, for obtaining certificate from the receiver to the effect that they have included such receipts as part of their income. The verdict of Ld. CIT(A) on this score has also to be upheld. Revenue appeal dismissed.
|