Tribunal upholds non-deduction of TDS on payments to Forwarding Agents

The Tribunal reversed the CIT(A) order and upheld the Assessing Officer's decision regarding the non-deduction of TDS on payments to Forwarding and Clearing Agents. The Tribunal found no evidence of reimbursement in the bills from the agents and upheld the disallowance due to the lack of TDS deduction. The previous ITAT decision in the Assessees' own case supported the disallowance. Consequently, both appeals by the Revenue were allowed, with orders pronounced on 5.10.2015.

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Issues:
Appeal by Revenue against CIT(A) order for two companies regarding TDS on payment to Forwarding and Clearing Agents.

Analysis:
1. Grounds of Appeal by Revenue:
- Revenue raised grounds against CIT(A) order, arguing non-deduction of TDS on payment to agents.
- CIT(A) erred in deleting addition of payment without TDS deduction.
- Reference to CBDT Circular No. 715 and previous ITAT decisions.
- CIT(A) not following ITAT orders from earlier years.

2. Arguments by Revenue and Assessees:
- Revenue contested CIT(A) decision based on previous ITAT rulings.
- Assessees claimed payments were reimbursement, not subject to TDS.
- Assessees failed to prove reimbursement nature of payments.

3. Decision and Rationale:
- Tribunal analyzed bills from agents, found no evidence of reimbursement.
- Assessees unable to break down bills into reimbursement and charges.
- Tribunal upheld AO's disallowance based on lack of TDS deduction.
- Previous ITAT decision in Assessees' own case supported disallowance.

4. Conclusion:
- Tribunal reversed CIT(A) order and upheld AO's decision.
- Both appeals by Revenue allowed, orders pronounced on 5.10.2015.

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