TaxTMI 
TaxTMI 
2019 (6) TMI 1470
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..... 73,03,040/-, which was processed u/s 143(1) of the Income-tax Act, 1961 ( in short 'the Act'). Subsequently, notices u/s 143(2) and 142(1) was issued to the assessee. In response to the said notices, the AR of the assessee furnished the required information as called for. 2.1 During the course of hearing, the assessee's AR was asked to furnish TDS reconciliation vide order sheet noting dated 21.1.2015. On examination of the details submitted, the AO noticed that the assessee has incurred an amount of Rs. 32,75,617/- towards Port Handling Charges under the head "Works Cost" during the relevant year and also the assessee has not deducted TDS on the said payment. 2.2 The AO further observed that in absence of any documentary evidence t....
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....because reimbursement amounts and other service charges are contained in a single sheet of paper. Memo of expenses / invoice is not a composite bill. 6. Reliance of learned CIT(A) on the Case Law cited by him and Board Circular No. 715 is misplaced. 7. For these and any other grounds that may be raised at/before the date of hearing, it is prayed that the disallowance u/s 40(a)(ia) of reimbursed expenses be deleted." 5. Before us, ld. AR of the assessee filed written submissions, the contents of which are as under: "1. Issue in appeal before the Hon'ble Tribunal is disallowance u/s. 40 (a)(ia) of Rs. 32,75,6171- made by A.O and sustained by the Learned CIT(A) to the extent of Rs. 32,69,025/- (32,75,617 -6,592) except for Rs. 6,592....
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....ons of the supreme court in the case of Associated Cement Co Ltd Vs. CIT [1993] 201 ITR 435 (SC), the passage on which reliance is sought to be placed by Learned CIT(A) is misquoted by him and it is torn out of context. That is basically a case where the contractor is liable to TDS and not a case of reimbursement at all. The contract amount was decided between the contractor and contractee on the basis of certain rates to be paid towards various categories of work. There is a clause 13 in the contract whereby if the rate payable to labour increases that increase must be reimbursed by the contractee Reimbursement rate becomes a part of the contract amount originally fixed by applying work-wise rates. 6. In respect of the decision relied on....
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....mbursable amount in the bills separately. Order of CIT(A) has been upheld in Para 6.4.3. Facts in our case are exactly similar. Ratio of the decision of the Bench applies to our case. 10. On reimbursement to C&F Carriers Like ICMS above there are also other decisions by Bombay High Court and the Benchers of the Tribunal. They are listed herein below and copies enclosed duly highlighting the relevant parts. (P 1 to 10) i. CIT, TDS-2, Mumbai Vs. Zee Entertainment Enterprises Ltd [2018] 92 taxmann.com 30 (Bom.) Paras 2(iv) r.w.4(a). (P 11 to 14) n, ACIT, New Delhi Vs. Swasthik Pipes Ltd [2018] 98 taxmann.com 420 (Delhi -Trib) Head Note (Held-I) and Para 7. (P 15 to 21) iii. Smt. Madhu Mehta Vs. DCIT [2016] 48 ITR(Trib) 246 (ITAT[Mum]) ....
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....ng the job itself, the assessee and the agent are aware that majority of the payment made to agent are towards payment to shipping companies, freight charges, container hiring charges, container movement charges etc. All the above charges are supported by the invoices from respective agencies. The assessee is required to make advance payment to the clearing agent and clearing agent will submit the actual expenditure details with the supporting invoices to the assessee by way of "Memo". Therefore, assessee is actually utilizing their services for the above purpose and they are compensated with the service charges, which also part of quotation submitted at the time of offer. This is the regular practice in the customs clearance. 7.1 In this ....