TaxTMI 
TaxTMI 
TaxTMI 
2019 (10) TMI 1129
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....ess of the petitioner is thus not that of a courier itself, but, an onboard agency as the parcels are transported from courier companies in Chennai for delivery to their counterparts in other destinations. This is done via air, paying air cargo or freight charges. The petitioner does not have any oral or written contract with the courier agencies in question. 3. Upon booking of the parcel with the airlines agent, airway bills are provided to the petitioner by the respective airlines. These bills are a receipt for the parcels themselves and are issued in duplicate, one to the petitioner and one to the consignee/agent oversees. Freight charges are collected in this regard, on a weekly/monthly basis based on the airway bills issued by the air....
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.... d) Anjalin Enterprises 35,631 e) Sai OBC 28,225 f) Southern Cargo 17,293 g) Sachet OBC 7,676 1,75,76,637 According to the assessee, as these are not listed to in section 30 to 38, section 40a(ia) is not applicable. Assessee has received courier charges of Rs. 1,95,18,536/- and against that receipt it has given freight charges / courier charges to the tune of Rs. 1,75,76,637/-. It is for carriage of goods by the online courier services promoted by the various airlines. Those courier services are working on behalf of the appellant. Hence, it will come under the work contract and TDS is applicable under Chapter XVII-B. Board's Circular No.713 is not applicable in the assessee's case as the courier servi....
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....f the relevant facts and legal position has passed an order dated 28.01.2013 allowing the appeal of the petitioner. The relevant portion is extracted below: '5.2 I have perused the appellant's submissions carefully. As seen from the provisions of sec. 28 of the Act, the income chargeable to tax under the head "Profits and gains of business or profession" includes the profits and gains of any business or profession carried on by the assessee. The relevant provisions are - Sec. 28 The following income shall be chargeable to income tax under the Head 'Profits and gains of business or profession'- (i) the profits and gains of any business or profession which was carried on by the assessee at any time during the previous year; Thus what ....
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....ows that if the deduction of a particular item from the incomings of the business or profession is neither expressly covered by the aforesaid sections, nor prohibited expressly or by necessary implication by those provisions, it can be allowed under section 28(i) provided, on ordinary commercial principles, it is a proper item to be debited against the incomings in ascertaining the "profits and gains" properly so called. While delivering the judgement, the Hon'ble court also relied on Badridas Daga vs. Commissioner of Income tax (1958) 34 ITR 10 (SC) and Commissioner of Income tax vs. Mysore Sugar Co. Ltd. (1962) 46 ITR 649 (SC). 5.4 The Supreme Court in the case of Badridas Daga v. CIT (1958) 34 ITR 10(SC), held that ordinary commercial ....
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....cements it is clear that all the direct expenses are allowable u/s 28 of the Act itself. The only expense specified u/s 30 to 38 alone are subjected to the provisions of sec.40(a)(ia) of the Act before allowance. In the instant case the payment of freight being direct expenses, are allowable u/s 28 itself and not under the provisions of sec. 30 to 38. However, the AO has not considered that this expenditure is allowable u/s 28 of the Act being the direct cost, and the provisions of Sec. 40 of the Act are not applicable for the deduction allowable u/s 28. In other words, the AO has treated the freight payments as allowable expenditure u/s 30 to 38 of the Act and hence applied the provisions u/s 40 for making the above disallowance of Rs. 3,2....