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TMI Blog2016 (4) TMI 297X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act without appreciating the confirmation of account, bank statement, statement of income, Balance Sheet and Profit & Loss A/c. 2. The learned CIT(A) erred in not allowing Rs. 46,644/- treating it as prior period expenses without appreciating that the expenditure was wholly and exclusively incurred for business purpose during the relevant year. 3. The C IT(A) erred in not admitting the additional evidence filed under Rule 46A of the Income Tax Rules without appreciating that the same ought to party (agent) was not responding to the notice u/s 133(6) of the Act. II. Disallowance of freight and Octroi Charges u/s.40(a)(ia) 4. On the facts and in the circumstances of the case, the learned CIT(A) erred in upholding the disallowance of fre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rs. 27,69,384/-. 3. The CIT(A) dismissed the appeal of the assessee on the ground of disallowance u/s 40(a)(ia) in the impugned order dated 02.011.2012 against which the present appeal is filed before us. 4. We have heard the Authorized Representative (AR) of the assessee and Departmental Representative (DR) of the revenue. At the beginning of making statement, AR of the assessee argued that assessee is not pressing the ground no.2. 5. The AR further argued in respect of ground no. 1 & 3 are in respect of commission of Rs. 13,12,258/- which was paid to one Rajesh Singh, who is one of the commission agent, the AO while dealing with the disallowance in para 4 of its order has observed that notice u/s 133(6) of the Act issued to the Raj ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cally rejected the same, otherwise the assessee could prove the identity of the party and the genuineness of the transaction and further argued that the payments were made through cheque. 8. DR of the revenue relied upon the order of authorities below on this ground and argued that this addition/disallowance does not require any interference from this Tribunal. 9. We have perused the material available on record and considered the rival contention of the parties and find that the AO has not examined the transaction which was made through banking channel nor discussed it in its order whether the cheque through which the payment was made was clear in the account of assessee or not ? 10. The assessee seeks opportunity to lead the additional ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er, freight charges are recovered by the supplier in the purchase invoice itself, hence, assessee is not required to deduct the TDS on such payment. The contention of the assessee was not accepted by the AO on the ground that as per the provision of section 194 of the Act any person responsible for paying any sum to any resident for carrying out any work in pursuance of contract between the contractor and specified person shall deduct in context on income comprised and the assessee had not deducted tax on reimbursement on freight charges and the same is not allowable as expenditure in view of the provision of section 40(a)(ia). 12. The CIT(A) while dealing with this ground has observed that assessee company has made disbursement of expense ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent of supply of material to the assessee and further argued that transportation charges are part of cost of goods and the freight charge was not paid separately. 14. The AR of the assessee relied upon the judgment of Punjab & Haryana High Court titled as CIT(TDS) vs. Asst. Manager (Accounts) Food Corporation of India, reported vide 326 ITR 106 (P&H) & CIT vs. Bhagwati Steel 326 ITR 108(P&H). 15. AR of the assessee relied upon the order of authorities below. 16. We have perused the various purchase order which are available on page nos. 67 to 113 of Paper Book which contains the reference and details of freight and forwarding charges in respect of the items/material purchased by the assessee. 17. In CIT vs. Asst. Manager (Accounts), FCI ..... X X X X Extracts X X X X X X X X Extracts X X X X
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