2012 (8) TMI 489

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....vidual, who was having business of import and trading of gypsum board sheets, which are primarily used for filing false ceilings under the name and style of North West. The assessee was doing this business in the capacity of the proprietor of North West. 3. In the assessment proceedings, the A.O. called for the details with regard to clearing and forwarding charges of Rs. 26.71 lacs, loading and unloading charges at Rs. 1.73 lacs and labour charges of Rs. 32.18 lacs, which were found to have been debited in the P & L A/c. The assessee could not produce all the details, purportedly on account of assessee having closed its business and setting down and having taken up a job at Goa. Since the details as asked for were not produced before th....

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....ent is made to the clearing and forwarding agent named M/s Jivan Karamsey and Sons. The CIT(A) also took note of the fact that Rs. 18,45,104 was in the nature of reimbursement of expenses and Rs. 8,26,217/- but did not deduct the tax on Rs. 18,45,104 as there were taken to the reimbursement of expenses and TDS was not required to be deducted as there was no element of income embedded therein. The assessee relied on the decision of coordinate bench at Mumbai in the case of Utility Powertech v/s ACIT reported in (2010) TIOL 545 and the decision of Hon'ble Bombay High Court in the case of CIT v/s Siemins Aktiongesellschaft, reported in 177 Taxman 81. The CIT(A), on these facts referred to the Board Circular No. 715 dated 8th August, 1995, wher....

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.... issue has been restored to the file of the A.O. to verify the nature of expense and claim made by the assessee. We also find that in the entire year, the assessee has done the business only with M/s. Jivan Karamsey and Sons, who has raised periodic bills during the year. We have also go through the Boards Circular No. 715 as quoted by the CIT(A). From the plain reading of the circular we do not find that doing business with one single party or number of parties, it only says that if there is one single consolidated bill then the provisions of section 194J would be attracted. But here we find four bills raised by Jivan at periodic intervals, which does not mean that there was one / single bill. In the light of these observations, we shall r....