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2019 (2) TMI 153 - AT - Income TaxTDS u/s 194C - reimbursement of expenses as claimed to be on account of payment of freight, cartage, conveyance, telephone etc. - Held that:- Assessee earned the commission income from M/s Unifruitti India (P) Ltd. and also received the expenses which were incurred by it for the said company. In this regard, the company M/s Unifruitti India (P) Ltd. furnished a certificate. The said certificate was not produced before the AO, however, the assessee furnished the same before the CIT(A) who admitted the said fact and also mentioned that the said certificate was undated but the facts mentioned in the said certificate resembled with the details furnished by the assessee. The figure of the Tax Deducted at source u/s 194C on the said expenses was same which was in the TDS certificate and the amount of reimbursement of expenses was claimed to be on account of payment of freight, cartage, conveyance, telephone etc. The assessee also furnished the details of the expenses reimbursed by M/s Unifruitti India (P) Ltd.. In our opinion, the reimbursement of expenses cannot be considered as the income of the assessee. The assessee was earning commission income as well as incurring the expenses on behalf of M/s Unifruitti India (P) Ltd. Those expenses incurred by the assessee were reimbursed by the said company, therefore, the reimbursed expenses cannot be considered as income of the assessee. In that view of the matter, we delete the impugned addition sustained by the ld. CIT(A). - Decided in favour of assessee.
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