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TMI Blog2011 (5) TMI 300X X X X Extracts X X X X X X X X Extracts X X X X ..... ss amount inclusive of professional fees as well as reimbursement of actual expenses and accordingly no TDS is required to be made when bills are raised separately by the agent only for reimbursement of actual expenses incurred by it - Accordingly, no TDS is required to be raised - Thus, addition of Rs. 30,66,703/- cannot be sustained. X X X X Extracts X X X X X X X X Extracts X X X X ..... der the provisions of Income Tax Act, 1961. Assessing Officer was not satisfied and he held that as per the provisions of section 194C the assessee is liable to deduct TDS on any work which include carriage of goods and passengers by any mode of transport. Since the assessee has failed to deduct the TDS on clearing and forwarding charges of Rs. 8,84,881/- and freight cartage outward of Rs. 30,66,703/-, an addition of Rs. 39,51,584/- is made to the income declared by the assessee u/s 40a(ia) of the Income Tax Act, 1961. 4. Upon assessee's appeal Ld. Commissioner of Income Tax (Appeals) noted that it was an argument by the assessee that payment of Rs. 30,66,703/- has been made by the assessee on the basis of separate bills raised by the for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bills are raised for gross amount inclusive of professional fees as well as reimbursement of actual expenses and accordingly no TDS is required to be made when bills are raised separately by the agent only for reimbursement of actual expenses incurred by it. The Hon'ble High Court has also observed that there is no element of profit involved in such bills relating to reimbursement of actual expenses. the ratio of the above judgement is directly applicable to the instant case. Similar decision has also been taken by the Hon'ble ITAT in a number of cases cited by the Ld. Authorised Representative. Thus, as per the statutory provisions contained in section 194C read with section 40a(ia) of the Act and the CBDT's Circular no. 715 dated 8.8.199 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... required to be made when bills are raised separately by the agent only for reimbursement of actual expenses incurred by it. Accordingly, no TDS is required to be raised. Thus, addition of Rs. 30,66,703/- cannot be sustained. 6.4 Further, as regards the disallowance of 8,84,881/-, Ld. Commissioner of Income Tax (Appeals) has given a finding that no payments had been made to any party/agent in excess of Rs. 50,000/-. Hence, the said payments are not subject to TDS, as per the provisions of section 194C. 6.5 In the background of the aforesaid discussion and impugned addition of Rs. 39,51,584/- has correctly been deleted by the Ld. Commissioner of Income Tax (Appeals). Accordingly, we do not find any infirmity in the order of the Ld. Commi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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