2015 (12) TMI 284

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....ing to assessment year 2009-10. 2. The Revenue has raised the following Grounds of appeal:- "1. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in deleting the disallowance of Rs. 71,83,663/- made by the AO u/s 40(a)(ia) of the IT Act without appreciating that the payment made by the assessee as warehousing charges paid to agents falls under the category of rent." 2. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in deleting the disallowance or Rs. 71,83,663/- made by the AO u/s 40(a)(ia) of the IT Act without appreciating the assessee failed to deduct tax at prescribed as per the provisions of section 194J of the IT Act. 3. On the facts and in the circumstances of....

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....es paid to C&F agents were in the nature of commission, liable for deduction of tax @ 10% u/s 194H of the Act, and not as 'rent' liable for deduction of tax @ 20% u/s 194I of the Act. The CIT(A) examined the terms and conditions of the agreement with C&F agents. The following discussion in the order of CIT(A) is relevant:- "From the sample copy of agreement, is noted that the payments were indeed made on the services given by those agents for clearing and forwarding of the assessee's goods and that even the sale bills were created by those agents on behalf of the assessee whereon the address of the assessee company i.e. J K Helence Curtis Ltd is given as care of those agents. For eg. One of its agents is Vihira Traders in Ahmedabad. The as....

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....efore us. 6. Before us, the Ld. DR has contended that the payment to C&F agents is for godown rents and therefore Section 194I of the Act has been rightly invoked to disallow the expenditure u/s 40(a)(ia) of the Act. 7. On the other hand, the Ld. Representative for the respondentassesseee defended the order of CIT(A) on the basis of the findings recorded therein. The assessee further argued that the CIT(A) has rightly observed that services rendered by the agents were in the nature of commission as understood for Section 194H of the Act and not 'rent' as understood for Section 194I of the Act. 8. We have carefully considered the rival submissions. In the present case, the stand of the Assessing Officer is that tax was liable to be deduct....