TaxTMI 
TaxTMI 
2013 (1) TMI 167
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...., 1961, on account of freight charges, department has also chalalenged the action of CIT(A) in admitting additional evidence without following procedure laid down under Rule 46A of the I.T. Rules, 1962. 2. At the very outset, Ld.DR was asked to clarify which fresh evidence has been admitted by CIT(A) and, if so, how it is in violation of Rule 46A of the I.T. Rules, she could not be able to show any evidence from the order of CIT(A). As such, this ground of appeal is dismissed. 3. As regards the deletion of addition of Rs.29,09,679/-, the facts are that the assessee company is engaged in the business of rendering services as Custom House Agents (CHA). The return of income for assessment year 2008-09 was filed by the assessee on 29.10.2....
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....and forwarding, and in the course of carrying on such business of clearing and forwarding, the assessee made payments to shipping companies for and on behalf of its clients, which were reimbursed later by assessee's client on actual basis. It was thus, contended by the ld. Counsel for the assessee that there was no expenses incurred by the assessee on account of payment made to various shipping companies/freight forwards and thus, there was no question of disallowance u/s 40(a)(ia) of the Act. He further submitted that the payment made to shipping companies on behalf of assessee's client consisted mainly of following items: - (i) Document Charges - these charges relate to preparation of bills of lading which is a basic document for expor....
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....py of orders of port authorities has also been furnished. It was thus, submitted by the ld. Counsel for the assessee that there was no requirement to deduct tax at source by the assessee intermediary from the payments made to shipping lines for and on behalf of assessee's client, and as such no disallowance u/s 40(a)(ia) is called for. In this connection, the ld. Counsel for the assessee has relied upon the decision of Hon'ble High Court of Delhi in the case of Commissioner of Income Tax vs. Cargo Linkers (2009) 179 Taxman 151 = (2008) 218 CTR (Del.) 695, where it was held by the Hon'ble High Court that the assessee C&F Agent is only an intermediary, who is not a person responsible for deduction of tax at source in terms of sec. 194C of ....
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....e to shipping lines, and as well the charges of the assessee on account of various services rendered by it. It has not been disputed by the AO that the bills issued by shipping companies were raised in the name of clients, whose goods were exported or imported, and the assessee thereafter raised the bill to its client separately indicating charges of the assessee as well as the charges paid by the assessee to shipping companies on behalf of its clients. Therefore, from the various details filed by the assessee and nature of the assessee's business of clearing and forwarding agents, we find that the assessee is nothing but an intermediary between the exporters and the shipping lines. The assessee facilitates the contract for carrying good....