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2018 (11) TMI 699 - AT - Income TaxDisallowance of interest expenditure - assessee has not charged the interest on advances given - Held that:- The assessee has merely stated that assessee has given in advance to the two women of ₹ 4 04250/– each for the purchase of land. However, no documentary evidence or any agreement to sale was produced. It was also not shown to us that when the land was actually purchased by the assessee. In view of this, the argument of the learned authorised representative remains unsubstantiated. It is also fact that assessee has not charged interest on these advances and has paid huge bank interest. No infirmity in the order of the lower authorities in confirming the disallowance on account of interest. - Decided against assessee. TDS u/s 194C - non deduction of tds on shipping and IHC charges paid to a foreign shipping company and clearing and forwarding charges and other expenses - whether the high seas purchase of goods purchased by the assessee had the liability of payment of freight and agency charges on the supplier of the goods or on the assessee? - Held that:- Based on the information available before us, it is not clear that whose liability it was to defray all these expenditure. We fully agree with the orders of the law authorities that on these sums tax should have been deducted at source. But the crux of the issue is that we should have deducted tax at source on this payments. Even otherwise, according to the proviso to section 40 (a) (ia) if the recipient of the income has paid tax on these income then the disallowance cannot be made in the hands of the assessee. In view of above facts, we set aside the whole issue back to the file of the learned assessing officer with a direction to the assessee to furnish adequate details before the assessing officer that whose liability it was to incur all these expenditure, on which tax should have been deducted at source. The assessee may place on record the high seas purchase agreements entered into with the supplier - decided in favour of assessee for statistical purposes.
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