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2017 (6) TMI 128 - AT - Income TaxReopening of assessment - addition made u/s 40(a)(ia) - Held that:- In the present case, it is noticed that the assessee acted only as an intermediary and there was no privity of contract between the assessee and client of carriers of goods. The assessee was clearing and forwarding agent and made the payments to the transporters which were reimbursed by the principal who deducted the TDS. On perusing the copy of profit and loss account placed at page no. 30 of the assessee’s paper book. It is noticed that no such expenses were debited in the profit and loss account. The provisions contained in the said Section 40(a)(ia) says that these provisions are applicable when any amount has been debited in the profit and loss account and deducted in computing the income chargeable under the head profits and gains of business or profession. In the present case, nothing has been deducted by the assessee from the income in the profit and loss account. Therefore, provisions of Section 40(a)(ia) of the Act are not applicable to the facts of the present case. See CIT Vs Hardarshan Singh [2013 (1) TMI 314 - DELHI HIGH COURT]. - Decided in favour of assessee.
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