TaxTMI 
TaxTMI 
2020 (1) TMI 984
X X X X Extracts X X X X
X X X X Extracts X X X X
....rds travelling expenses. 2. Briefly the facts are, the assessee, a resident company, is engaged in the business of providing Information Technologies Enabled Services (ITES), trading and manufacturing of business automation machines etc. For the assessment year under consieration assessee filed its return of income 30.09.2013 declaring nil income after set off of brought forward losses. In course of assessment proceedings the Assessing Officer called upon the assessee to furnish details of various expenses debited to the profit & loss account. While verifying the details submitted by the assessee, he noticed that an amount of Rs. 27,50,000/- being provision made for travelling and conveyance expenses has been debited to profit & loss acc....
X X X X Extracts X X X X
X X X X Extracts X X X X
....for expenditure contingent in nature. The factual aspect of the issue was verified by ld. Commissioner (Appeals) and he has concluded that the expenditure has crystallized during the year. The Revenue has also not brought any material on record to show that any part of the aforesaid expenditure was claimed by the assessee in the succeeding assessment year. In view of the aforesaid, we do not find any infirmity in the decision of ld. Commissioner (Appeals) on the issue. Ground raised is dismissed. 4. In ground no. 2 to 6 the Revenue has challenged deletion of various disallowances made under section 40(a)(ia) in respect of the following expenditures debited to profit & loss account. i. Payment of rent Rs. 68,71,902/- ii.....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e found that out of the total payment made towards rent amounting to Rs. 1,13,92,537/-, at best, disallowance can be made for an amount of Rs. 45,20,625/-. Thus he restricted the disallowance in respect of payment of rent to the aforesaid amount. As regards, payment of interest of Rs. 15,00,000/- to Tata Capital Financial Services, ld. Commissioner (Appeals) found that the assessee had deducted tax at source under section 194J of the Act inadvertently instead of section 194A. However, he found that the rate of deduction of tax under both the sections is same i.e. 10 percent. Further, he found that the assessee has also furnished evidence showing deposit of TDS with the government account. Considering the above, he deleted the disallowance. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... ambit of section 194H of the Act. After considering the submission of the assessee, learned Commissioner (Appeals) was convinced that the payment made would not attract TDS provision. Accordingly, he deleted the addition made by the Assessing Officer. 6. Contesting the deletion of disallowance made in respect of payment of rent, interest, contract labour charges, freight and forwarding charges, The basic contention of ld. Departmental Representative is, learned Commissioner (Appeals) has deleted part of the disallowance by entertaining additional evidences in violation of Rule 46A of the Income Tax Act. He submitted, before the Assessing Officer the assessee did not produce any evidence. Whereas, before learned Commissioner (Appeals) as....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d Commissioner (Appeals) on the issue. As regards disallowance of sales commission, the learned Authorised Representative submitted, on factual verification learned Commissioner (Appeals) has found that the payment made is not in the nature of brokerage or commission. Therefore, he has deleted the disallowance. 8. We have considered rival submissions and perused the material on record. It is evident, the Assessing Officer has made disallowance under section 40(a)(ia) in respect of various payments made by the assessee during the year, either for short deduction of tax or non deduction of tax. The facts on record also make it clear that in respect of payment of rent, interest and contract labour charges, the assessee had deducted tax at a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....uirements of Rule 46A. In any case of the matter, the power of learned Commissioner (Appeals) being co-terminus with that of Assessing Officer, he is empowered under the provisions of the Act to conduct necessary enquiry which the Assessing Officer can conduct to ascertain the correct facts. In view of the aforesaid, we do not find any infirmity in the decision of learned Commissioner (Appeals). In so far as payment of freight and forwarding charges, the assessee had demonstrated before learned Commissioner (Appeals) that part of such payment is in the nature of reimbursement of octroi/entry taxes paid. Upon due consideration of such fact, learned Commissioner (Appeals) had sustained the addition in part. The aforesaid decision of learned C....