2012 (6) TMI 704

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....   1. This appeal by the Revenue is directed against the order of the Ld. Commissioner of Income Tax (Appeals) dated 28.3.2011 pertaining to assessment year 2008-09.   2. The issue raised is that Ld. Commissioner of Income Tax (Appeals) erred in deleting the disallowance of Rs. 48,61,509/- made u/s. 40(a)(ia) in respect of freight on export outward on which no tax was deducted at s....

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....lines. Assessee further relied upon the certain case laws in this regard. On considering the issue, the Ld. Commissioner of Income Tax (Appeals) held as under:-   "On careful examination of the matter, I find that the payments made on the basis of separate bills raised for reimbursement of actual freight charges paid to airlines are not covered by the provisions of section 194C read ....

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.... such bills relating to reimbursement of actual expenses. The ratio of the above judgement is applicable to the instant case. Similar decision has also been taken by the Hon'ble ITAT in a number of cases cited by the Ld. Authorised Representative. Thus, as per the statutory provisions contained in section 194C read with section 40(a)(ia) of the Act and the CBDT's Circular No. 715 dated 08.....

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....TO vs. M/s ONS Creations Pvt. Ltd. vide order dated 13/5/2011 has considered the identical issue and decide the issue in favour of the assessee.   6.1 We have carefully considered the submissions and perused the records. We find that Ld. Commissioner of Income Tax (Appeals) is correct in holding that provision of section 40(a)(ia) does not apply to such payments made towards reimbursement ....