2015 (12) TMI 755

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....issued notice to the assessee also. The assessee has filed Cross Objection bearing No.50/Ahd/2015. The registry has pointed out that the Cross Objection is time barred by 1234 days. 3. The solitary grievance of the Revenue is that ld. CIT(A) has erred in deleting the addition of Rs. 41,14,375/- which was added by the AO u/s 40(a)(ia) of the I.T. Act, 1961. 4. Brief facts of the case are that assessee is a firm engaged in the trading, processing & commission agent of pulse and other merchandise. It has filed its return of income on 6-10-2008 declaring total income at Rs. 7,83,300/-. The case of the assessee was selected for scrutiny assessment and notice under section 143(2) was issued and served upon the assessee. On scrutiny of the a....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e failed to deduct TDS, it is not entitled for expenditure of transport charges. He made an addition of Rs. 41,14,375/-. 5. On appeal ld. CIT(A) has deleted the addition. The relevant finding recorded by the CIT(A) reads as under :- "3.1(ii) This issue was discussed by the AO at para 4.1 of the assessment order. It was held by him that the appellant should have deducted TDS on the freight payment made to transporters and since it was not done, the payment was not deductible in computing the income. Accordingly, he made the impugned disallowance u/s 40(a)(ia). The contention of the ld. AR in this regard in brief are as follows. The appellant maintained "freight recoverable"account separately, wherein the freight amount paid to tr....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....document provides that freight charges for supply of pulses, animal rations will not be included by the tenderer. Because it will be reimbursed separately. This clause reads as under: "6.11 (a) The road transportation charges are reimbursed to the suppliers, as per the Govt. approved rates, only in the case of Pulses, Animal Rations (crushed), WMP, Butter Tinned, Ghee, Edible Oils, Vanaspati and Tea. (b) For all other items the Supplier Tenderer will have to bear the entire cost of transportation. (c) The tenderers should not include cost of transportation in their offered rates for those specified items in (a) above but only for other items, the basic rate quoted by the tenderer should include the cost of transportation up to the ....