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2022 (3) TMI 72 - ITAT BANGALOREDisallowance u/s.40(a)(ia) in respect of freight charges paid - As per AO freight charges are paid by the supplier on behalf of the assessee and hence TDS would have been deducted therefrom - whether M/s. Rukmini Rama Steel Rollings Pvt. Ltd. engages the lorry on its own account or on behalf of the assessee? - HELD THAT:- A.O. has taken the view that the lorry freight is paid on behalf of the assessee. However, M/s. Rukmini Rama Steel Rollings Pvt. Ltd. have also confirmed the submission of the assessee that the sales price charged to the assessee includes cost, freight, taxes and other duties, meaning thereby, the lorry freight is paid by M/s. Rukmini Rama Steel Rollings Pvt. Ltd. on its own account and not on behalf of the assessee. We are of the view that it cannot be said that the liability to deduct tax at source would fall upon the assessee, merely for the reason that the assessee has disclosed freight charges separately. Accordingly, we are unable to agree with the view expressed by the Ld. CIT(A). Accordingly, we set aside the order passed by Ld. CIT(A) on this issue and direct the A.O. to delete the disallowance made u/s. 40(a)(ia) of the Act during the year under consideration. - Appeal of assessee allowed.
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