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TMI Blog2012 (8) TMI 489X X X X Extracts X X X X X X X X Extracts X X X X ..... his computation and (iii) the extent of reimbursement of expenses, which, do not get covered by the provisions of TDS. As a part of the amount on which TDS is not deducted is suo-moto disallowed by the appellant in his return of income filed, provisions of section 40 (a) (ia) are applicable only to amounts of expenditure which are payable as on 31st March every year and it cannot be invoked to disallow expenditure which has been actually paid during the previous year, without deducting TDS - in favour of assessee for statistical purposes. - I .T.A. No. 4811/Mum/2011 - - - Dated:- 29-6-2012 - SHRI B. RAMAKOTAIAH, AND SHRI VIVEK VARMA, JJ. Appellant by : Shri Mayur Kisnadwala Respondent by : Shri M. Murali O R D E R PE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y deleting the ad hoc additions on account of loading and unloading charges and labour charges. On account of clearing and forwarding expenses of Rs. 26,71,321, it was explained that Rs. 18,45,104 are in the nature of reimbursement of expenses. It was submitted by the assessee that since these were reimbursement of expenses, provisions of Chapter XVII B did not apply. The assessee further explained that only the remainder i.e. Rs. 8,26,217 was liable for deduction of tax at source, and partly out which, the assessee had suo moto deducted the tax, except on Rs. 4,33,750, which he had added back in his computation of return. The assessee, therefore, pleaded that no further disallowance was called for by invoking the provisions of section 40(a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Delhi in the case of ITO v/s Willman Schwabe India (P) Ltd. reported in 3 SOT 71, finally held, had been separate bills raised then the provisions of section 194J would not have applied but since there was just one single consolidated bill to one party, provisions of Chapter XVIIB are applicable. Having held that, the CIT(A) directed the AO to verify the claim of the assessee, and accordingly the same may be reduced while working out the disallowance on this account at the time of giving effect to this order. Similarly, the AO is also directed to verify the claim of the appellant that a part of the amount on which TDS is not deducted (Rs.4,33,750/-) is suo-moto disallowed by the appellant in his return of income filed, while giving effect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... utation and (iii) the extent of reimbursement of expenses, which, do not get covered by the provisions of TDS. The AO shall examine these in the light of provisions of section 40(a)(ia), keeping in mind the decisions of the coordinate Benches including the decision rendered by the Special Bench in the case of Marilyn Shipping Transport Vs ADD C.I.T., reported in 20 Taxman.com 244 (Visakhapatnam), wherein it has been held that provisions of section 40(a)(ia) are applicable only to amounts of expenditure which are payable as on 31st March every year and it cannot be invoked to disallow expenditure which has been actually paid during the previous year, without deducting TDS . 8. The issue stands restored to the AO, as held in para 5 above ..... X X X X Extracts X X X X X X X X Extracts X X X X
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