TMI Blog2023 (3) TMI 1310X X X X Extracts X X X X X X X X Extracts X X X X ..... allowance made by the AO u/s 40(a)(ia) was right. Accordingly the disallowance is upheld. Therefore, the ground numbers 1 and 3 of the assessee are dismissed. - ITA No. 103/PUN/2022 - - - Dated:- 17-3-2023 - SHRI S. S.GODARA , JUDICIAL MEMBER AND DR. DIPAK P. RIPOTE , ACCOUNTANT MEMBER For the Assessee : Shri M.M.Kulkarani AR For the Revenue : Shri M.G.Jasnani DR ORDER PER DR. DIPAK P. RIPOTE , AM : This appeal filed by the Assessee is directed against the order of ld.Commissioner of Income Tax(Appeal)[NFAC], Delhi dated 16.12.2021 emanating from the assessment order dated 11.12.2019 under section 143(3) r.w.s 254 of the I.T.Act, 1961 for A.Y.2009-10. The Assessee has raised the following grounds of appeal: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ture to be deduced in arriving at the gross profit,. f) On the facts and circumstances of the case, the provisions of section 1941 were not applicable to the assessee as there was no contract entered into by the assessee to take any land or building on rent or lease. 3. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in confirming action of the Assessing Officer in levying interest u/s 234A, 234B and 234C. 4. The Appellant prays that the order for disallowance of warehouse charges shall be deleted. The Appellant craves leave to add, amend, alter vary and/or withdraw any or all the above grounds of appeal. 2. Brief facts of the case are that the assessee is a Commission Agent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also debited warehouse charges to P L account. The ld.AR submitted that the provisions of section 40(a)(ia) are not applicable in the case of the assessee as the amounts have been paid by the purchaser directly to the warehouse. The Ld.AR submitted that the AO had issued letters u/s 133(6) to various persons but non replied. The assessee also could not get any confirmations from them. Ld.DR s submission : 4. Ld.DR relied on the order of the AO. The ld.DR submitted that AO had issued letters to various persons but no reply received by the AO. The assessee also failed to file confirmations. The LD.DR submitted that the assessee has admittedly debited the amounts paid to warehouses and claimed as expenditure. Once the assessee had ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es furnished by the assessee at pages 4 to 7 of the paper book indicate that the assessee has charged for the goods and there is no reference of any collection of warehousing charges. Therefore, the plea raised by the assessee that it is a case of reimbursement or expenses is without any merit. We do not find any infirmity in the order of Commissioner of Income Tax (Appeals) in confirming the addition. The invoices furnished by the assessee at pages 4 to 7 of the paper book indicate that the assessee has charged for the goods and there is no reference of any collection of warehousing charges. Therefore, the plea raised by the assessee that it is a case of reimbursement or expenses is without any merit. We do not find any infirmity in the or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... had offered the impugned amount for taxation. 5.2. It is an admitted fact that the Assessee has not deducted TDS on the amounts paid to warehouses. It is also an admitted fact that the assessee has debited said amounts in her books and claimed as expenditure. 5.3 Section 194I as applicable for relevant AY is as under : [Rent. 93 194-I. Any person, not being an individual or a Hindu undivided family, who is responsible for paying to 94 [a resident] any income by way of rent 95 , shall, at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, 96 [deduct income-tax thereon at the rate of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r (f) equipment; or (g) furniture; or (h) fittings, whether or not any or all of the above are owned by the payee;] (ii ) where any income is credited to any account, whether called Suspense account or by any other name, in the books of account of the person liable to pay such income, such crediting shall be deemed to be credit of such income to the account of the payee and the provisions of this section shall apply accordingly.] 6. In this case there was an arrangement between the assessee and warehouses, that the assessee will store the grains in the warehouses for which assessee was liable to pay certain charges. These are nothing but rent as defined in section 194I. Therefore, the assessee was liable ..... X X X X Extracts X X X X X X X X Extracts X X X X
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