TaxTMI 
TaxTMI 
2011 (5) TMI 894
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....the AO in making disallowance of custom house agent expenses of Rs. 5,49,374/- out of total Rs. 6,96,957/- u/s.40(a)(ia) of the IT Act for non-deduction of tax u/s.194C from the payments in the nature of reimbursement." 3. Brief facts are that it is noted by the Assessing Officer in the assessment order that the assessee-company has debited to the profit and loss account C&F Charges of Rs. 7,41,845/-, freight and octroi charges at Rs. 10,07,444/- which included ocean freight payment of Rs. 4,66,299/-. The Assessing Officer asked the assessee to furnish details of such payments made during the year. The Assessing Officer also issued show cause notice to the assessee as to why the assessee company has not deducted TDS at eligible rates on pa....
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....d., 14 SOT 204 (Del) iii) ITO Vs. Dr. Willmar Schwabe India P. Ltd., 95 TTJ 53 (Del) iv) Transmission Corpn. Of AP Ltd. Vs. CIT, 239 ITR 587 (SC); v) ACIT Vs. Grandprix Fab P. Ltd., 128 TTJ 60 (Del). 6. It is submitted that in the case of Dr. Wilmar Schwabe India P. Ltd., (supra), CBDT Circular No.715 dated 8-8-1975 was duly considered by the Tribunal and it was held that since bill for reimbursement of expenses were separately raised, TDS was not deductible from such reimbursement of expenses. It was submitted that in the present case also, separate bill was raised by the commission agent regarding reimbursement of expenses and hence, TDS is not deductible in the present case also. Regarding the judgment of Hon'ble Apex Court rendered ....
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....cannot be made applicable to the present case because in the present case, there is no composite bill raised by the commission agent and as per the learned AR of the assessee, separate bill was raised by the commission agent for reimbursement of expenses and the learned DR could not contradict this submission of the learned AR of the assessee. We also find that the Tribunal has also considered the Board Circular No.715 dated 8-8-1975 in the case of Dr. Willmar Schwabe India P. Ltd. (supra) and it was held that when the bill for reimbursement of expenses has been separately raised by the consultant, Section 194J is not applicable. Hence, by respectfully following this Tribunal decision, we hold that in the present case also, since bills for ....