TMI Blog2011 (11) TMI 703X X X X Extracts X X X X X X X X Extracts X X X X ..... roper evidence Assessing Officer made estimated disallowances on account of business promotion expenses, coolie and cartage expenses and general expenses. In appeal, CIT(A) gave part relief on account of business promotion expenses i.e. 20% of the expenses amounting to ₹ 12,327/- i.e. sustained the disallowance of ₹ 6,000/-, sustained the disallowance of ₹ 8,388/- out of coolie and cartage expenses and sustained the disallowance as made by Assessing Officer in respect of general expenses i.e. ₹ 2,918/-. Since lower authorities have made the disallowances in absence of proper evidence, we find no need to interfere with the same and the same is hereby upheld. These grounds of assessee’s appeal are dismissed. - I.T.A N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clearing charges includes Custom duty, Stamp duty, Service Tax, Port charges which was collected by the agent and paid to the Government other authorities on which TDS was not deductible. 3. We have heard rival submissions and gone through facts and circumstances of the case. We find that the Assessing Officer noticed that the assessee has paid freight charges at ₹ 62,285/- and clearing charges at ₹ 6,71,261/- to M/s. Inland Road Transport Pvt. Ltd. and M/s. J. S. Clearing Services respectively. According to Assessing Officer, the assessee is liable to deduct TDS u/s. 194C of the Act but he has not deducted TDS and hence, he invoked the provisions of section 40(a)(ia) of the Act. 4. At the outset, the Ld. Counsel for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5 2,823.00 - 6,413.00 10-11-2004 523 1,518.00 74 5 30 - 2,150.00 02-12-2004 1,078.00 2,200.00 112 5 30 - 3,425.00 25-12-2004 1,111.00 2,846.00 143 5 3,030.00 - 7,135.00 02-02-2005 843 2,200.00 112 5 30 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ayment of rent and removal documentation fee and document processing fee. Ld. Counsel for the assessee stated that this can be verified from copies of bills of freight charges and copies of bills of clearing service charges. Ld. Counsel for the assessee stated that reimbursement expenses and custom duty payments by agent for and on behalf of the assessee cannot be covered under the TDS provisions. Hence, these expenses are not liable to TDS and the provisions of section 40(a)(ia) of the Act and not applicable. For this, he relied on the decision in the case of ACIT V. Grandprix Fab. (P) Ltd,. (2010) 128 TTJ 60 (Del.), wherein the Tribunal vide para 16 has held as under: 16. In respect of the payment towards agency charges amounting to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he case of Willmar Schwabe India (P) Ltd. (supra), wherein it has been held that if there is reimbursement of expenses on account of bills raised, no TDS is to be deducted therefrom. Section 194C of the Act is applicable, where payments is made to a contractor/sub-contractor, where contract is either a work contract of a contract for supply of labour for works contract. In the case before us, we observe that the assessee has reimbursed the expenses to its consignment agent and it was not a direct payment for freight by the assessee to the transporter. Therefore, we are of the considered view that there is no infirmity in the order of the Ld. CIT(A). Accordingly, we uphold the order of the Ld. CIT(a) and reject the grounds of appeal taken by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... matter of TDS in view of above cited case laws. Respectfully following these case laws, we allow the claim of assessee. This ground of assessee s appeal is allowed. 5. Ground nos. 3, 4 and 5 are against the order of CIT(A) relating to part relief of ₹ 6,327/- as against disallowance of ₹ 12,327/- on account of business promotion expenses, confirming the disallowance of ₹ 8,388/- in respect of Coolie Cartage expenses and confirming the disallowance of ₹ 2,918/- in respect of general expenses respectively. 6. We have heard rival submissions on the above issue and gone through facts and circumstances of the case. We find that in absence of proper evidence Assessing Officer made estimated disallowances on account ..... X X X X Extracts X X X X X X X X Extracts X X X X
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