TMI Blog2015 (1) TMI 316X X X X Extracts X X X X X X X X Extracts X X X X ..... . - matter remanded back to the Assessing Officer for proper verification regarding the nature of the payment made by the assessee and then decide the issue afresh as per law. Depreciation - Car was a business asset and depreciation was allowed in the earlier years then any loss on account of sale of the said asset has to be adjusted as per provisions of section 32 because the block of assets did not cease to exist when the assessee purchased a new car during the year. Accordingly, we set aside this issue for limited purpose for allowing the claim u/s 32 on account of loss on sale of car. As regards the loss on account of furniture, cellular phone and water filter, since the block of assets ceased to exist, therefore, the same is not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee had made the reimbursement, therefore, it was not subjected to TDS. The CIT(A) did not accept the contention of the assessee and held that the assessee was required to deduct tax at source on the said amount which she has not done, accordingly the disallowance made by Assessing Officer u/s 40(a)(ia) was confirmed. 5. Before us, the Ld. Authorized Representative of the assessee has referred the details of the amount paid to its agent namely Paresh Champaklal Shah, who is a custom house agent and submitted that out of the total amount of ₹ 3,57,945/- a sum of ₹ 2,93,664/-was paid in connection with Octro, Custom Duty and other charges and not as a fee to the Clearing Agent. Thus the Ld. Authorized Representative has su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not given the convincing explanation for non deduction of TDS. However, before the CIT(A), the assessee has submitted that the major part of this amount is for reimbursement of expenses incurred by the Clearing Agent regarding payment of Octor, Custom duty and other charges. We find that neither the Assessing Officer nor the CIT(A) has examined or verified the nature of actual payment made by the assessee. The assessee has filed the details of the expenses at page 30 and 31 of the paper book, wherein, the total expenditure of ₹ 3,57,945/- has been bifurcated into two categories i.e. the reimbursement of expenses to the tune of ₹ 2,93,664/- and agency charges of ₹ 64,281/-. Since the authorities below have not examined the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /-. Further the loss on account of Cellular Phone and loss on account of Water Filter is ₹ 1,843/- and ,6226/- respectively. The Ld. Authorized Representative has submitted that since the assessee purchased a new car during the year, therefore, the loss on account of sale of car has to be adjusted as per the provisions of section 32. As regards the other losses on account of sale of furniture and Cellular Phone and water filter, the Ld. Authorized Representative has submitted that the block of asssets in respect of furniture, cellular phone and water filter ceased to exist. Thus the Ld. Authorized Representative has pleaded that loss on account of sale of car is an allowable claim u/s 32 which was wrongly denied by the authorities bel ..... X X X X Extracts X X X X X X X X Extracts X X X X
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