2013 (8) TMI 959

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....,427/- on account of freight charges and Rs. 29,700/- on account of Clearing & Forwarding charges without appreciating the fact that the said expenses are not "reimbursement" in nature and attracts the provisions of Sec. 194C." 2. "On the fact and in the circumstances of the case arid in law, the Ld.CIT(A) has erred in holding that there cannot be double deduction of tax on same amount, as whenever TDS is to be deducted, the same has been deducted by the agent, without appreciating the fact that the bills raised by the Agent have not mentioned any amount of tax deducted at source while king payment to shipping companies or airlines." 3. "On the fact and in the circumstances of the case and in law, the Ld. CIT(A) has erred ....

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....nt has raised a separate bill for these, expenses. It is also stated claimed so in the assessment proceedings. (2) Whenever TDS is to be deducted that has been deducted by the agent and paid to government account on behalf of the appellant. Hence there cannot be again deduction of tax on the same amount. Copy of Form No.16A, reflecting deduction of ax by agent, CHA Merchant Air Freight Services (P0 Ltd. has been filed. (3) The sample Airway bills of the Airlines show the name of the appellant. The same amount has been reimbursed to the agent. The handling charges of the agent has been separately billed. (4) The ITAT in its decision in P.P. Overseas ITA No.733/Mum/201 AY.2006- 07 dated 18.2.2011 decided similar iss....

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....td. vs. ITO (supra) has also considered the CBDT Circular, which is relied upon by Ld.DR. 5. We have heard both the parties and their contentions have carefully been considered. Ld. CIT(A) has given a categorical finding that amount of Rs. 61,72,427/- paid by the assessee to clearing and forwarding agent is merely reimbursement expenditure for which the agent has raised a separate bill for these expenditure. Wherever TDS was to be deducted has been deducted by agent and paid to Government account on behalf of the assessee. Therefore, assessee cannot be asked to deduct tax out of the same amount. For this purpose Ld. CIT(A) has also considered copy of Form No.16A, which reflected the deduction of tax by the agent. Ld. CIT(A) has also foun....

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....e 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.7 15 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 1941 is not applicable. Hence, by respectfully following this Tribunal decision, we hold that in the present case also, since bills for reimbursement of expenditure have been raised by the commission agent separately, TDS was not required to be deducted from such reimbursement of expenses and as a consequence, Section....