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2022 (11) TMI 614 - AT - Income TaxTDS u/s 194C - Disallowance u/s 40(a)(ia) - disallowance of Harbor expenses - HELD THAT:- Harbour expenditure is a reimbursement of expenses to M/s.Trimex Minerals (P) Ltd., in turn, the party has incurred expenditure on behalf of the assessee and paid harbour expenditure to Chennai Port Trust for export of iron ore. As further noted that the assessee has filed copies of debit notes issued by M/s.Trimex Minerals (P) Ltd., along with ledger extract, and also confirmation from the parties where the party categorically confirmed a sum is paid to Chennai Port Trust, and said payment does not come under the provisions of TDS, because, Chennai Port Trust is a Government Organization and thus, TDS has not been deducted. We find that although the assessee has filed various details including confirmation from the party and copies of debit notes to prove that it is a reimbursement but not direct expenses incurred by the assessee, the AO simply ignored all the evidences filed by the assessee and made additions. Therefore additions made towards harbour expenditure for non deduction of TDS, is not sustainable and hence, we direct the AO to delete the addition made towards harbour expenditure. Appeal filed by the assessee is allowed.
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