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TMI Blog2015 (8) TMI 1458X X X X Extracts X X X X X X X X Extracts X X X X ..... "1. The hon'ble CIT(A) has erred in confirming of Rs. 11,33,134/- u/s. 40(a)(ia) being the reimbursement of expenses paid to clearing and & forwarding Agents, reimbursed towards stamp charges, documents charges for custom, loading & Unloading charges and other miscellaneous expenses. The said expenses incurred are in respect of reimbursement and hence not subject to TDS. In view of this, the action of A.O. to invoke provision of Sec. 40(a)(ia) is unjust and to be unconfirmed. It is to be held so now and A.O. be directed to delete the addition." 3. The assessee company manufactures and supplies belt conveyer parts. The Assessing Officer took up scrutiny in its case. He found it to have paid a sum of Rs. 16,56,989/- to M/s Express Transport ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ese sections is to be deducted from the sum paid and reimbursement cannot be separated out of bill amount for the purpose of deduction of tax at source. But at this place I do not fully agree with the decision/observation of my Ld. Predecessor. In my opinion if any payments are made by the appellant towards custom duty or any other government dues through custom clearing and forwarding agent for clearing the imported goods etc. then it is not required to deduct the tax at source on such payments as no element of income is embedded in reimbursement of such expenses. In this regard the Hon'ble Delhi ITAT in appeal No. ITA No. 1208/2009 in the case of ACIT V Grand Prix Fab P Ltd. has clearly held that appellant is not obliged to deduct tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... preceding assessment year for holding that no TDS is required to be deducted in case of reimbursements in question since there is no income element embedded therein. However, he holds that the assessee's ship line bills etc. are to be subjected to TDS. We find this latter observation to be not correct. The assessee's stand throughout has been that such shipping payments do not require TDS deduction as per the Boards Circular No. 723 dated 01-09-1995 excluding operation of the relevant TDS provisions. Both the lower authorities fail to rebut this contention on facts and law. We accordingly hold that the CIT(A) erred in directing the Assessing Officer to consider assessee's shipping line bills for the purpose of TDS deduction. The case file ..... X X X X Extracts X X X X X X X X Extracts X X X X
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