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2014 (7) TMI 515 - ITAT DELHISustenance of addition @ 8% - Other clearing expenses - Whether some profit rate can be applied on the amount received by the assessee under the head 'Other clearing expenses' to form part of total income - Held that:- All the amounts listed in invoice raised on Aksh Optifibre Ltd. represent the reimbursement of expenses without any profit element - The amount of remuneration has been credited by the assessee to its Profit & Loss Account - the amount as per invoice is reimbursement of expenses claimed by the assessee from Aksh Optifibre Ltd. - there is no element of income in the reimbursement of expenses, this amount was neither claimed as deduction nor offered as income - As the total sum including 'Other clearing expenses' is in the nature of expenses incurred by the assessee in getting the goods cleared from customs in the first go, which were paid by the clients as such in terms of the agreements as discussed above, naturally there is no element of income requiring inclusion of this amount as such or in part thereof, in the total income - none of the items culminating into 'Reimbursement of expenses' contained any profit element – thus, there is no logic in applying 8% or any other profit rate on 'Other clearing expenses' which is a part of the total 'Reimbursement'. Non deduction of TDS on rent paid on behalf of its clients - Godown charges paid and added back to income u/s 40(a)(ia) of the Act – whether the provisions of section 40(a)(ia) are magnetized on the amount of Godown rent paid by the assessee on behalf of its clients - Held that:- In order to qualify as income or expenditure, it is of paramount importance that the assessee must have earned the income or incurred the expenditure in his own right - The expenditure should be directed towards the earning of income and the income should ordinarily be the result of incurring of expenditure - If the expenditure is incurred or income is earned not in own capacity, but as representative of some third person, then it is the expenditure or income of such third person and not that of the assessee. Neither any expenditure was claimed towards payment of godown rent nor any income was offered on this account - The transaction of actually paying godown rent was for and on behalf of its customers - It was for these customers to claim deduction for the payment of godown rent etc. in their accounts - Relying upon Expeditors International (India) (P) Ltd. VS. CIT [2008 (8) TMI 399 - ITAT DELHI-F] - Decided partly in favour of Assessee.
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