TMI Blog2015 (10) TMI 1443X X X X Extracts X X X X X X X X Extracts X X X X ..... DENT AND RAJENDRA, JJ. For The Appellant : Sunil Sharma and Manoj Sharma For The Respondent : O.P. Kanther ORDER H.L. Karwa, President - This appeal filed by the assessee is directed against the order of Ld CIT(A), Shilong dated 16.5.2012 for the assessment year 2006-07. 2. In this appeal, the assessee has raised following grounds: 1. Whether on the facts and in the circumstances of the case, the Ld CIT(A), Shilong was justified in law in confirming the action of the AO in making disallowance of ₹ 26,72,955/- paid to C F Agent on account of Lorry Freight, under the provision of section 40(a)(ia) of the Income tax Act, 1961. 2. On the facts and in the circumstances of the case and in law, the Ld CIT(a), Sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Forwarding Agency and paid to the credit of the Central Government, for which necessary confirmation was also furnished. 4. On appeal, the Ld CIT(A) upheld the order of the Assessing Officer and, hence, the assessee has preferred this appeal before the Tribunal. 5. Before us, Shri Sunil Sharma and Shri Manoj Sharma, Ld counsels for the assessee submitted that the assessee company has claimed the total sum of ₹ 26,72,955/- under the head Freight Cartage' for transportation of export goods from various sites of purchases to the seaport of Mumbai. It is stated that M/s. NFPL was assigned for the job of clearing and forwarding the export consignments to various destinations from Mumbai seaport. The agent M/s. NFPL used to ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... DS on the same payment. It is observed that there is no material on record to controvert the submissions made by the Ld counsels for the assessee. In the instant case, the agent (NFPL) had already deducted the TDS and deposited the same to the credit of Central Government and, therefore, there is no further liability of the assessee to deduct the TDS . In our opinion, the relationship between the assessee and agent (NFPL) is that of the principal and agent and the obligation to deduct tax at source from payment of transportation charges was complied with by the agent on different dates for and on behalf of the assessee and, therefore, no disallowance u/s.40(a)(ia) is called for. In the case of CIT v. Gujarat Narmada Valley Fertilisers Co. L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax (Appeals) quashing and setting aside the order passed by the AO in deleting the disallowance of ₹ 6,983,372/- and ₹ 76,00,509/- claimed by the assessee under section 40(a)(ia) of the Income tax Act, we see no reason to interfere with the same. No error has been committed by the Ld Tribunal in confirming the order passed by the Commissioner of Tax (Appeals). No question of law, much less substantial question of law arises in the present appeal. Hence, the present appeal deserves to be dismissed and is accordingly dismissed. 6. It is observed that the Special Leave Petition preferred by the Revenue in the case of Gujarat Narmada Valley Fertilizers Co. Ltd. (supra) has been dismissed by the Hon'ble Supreme Court CIT v. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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