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TMI Blog2014 (4) TMI 314X X X X Extracts X X X X X X X X Extracts X X X X ..... payments made to shipping agents of non- residents is nothing but reimbursement of charges which has been clarified by the CBDT circular no. 723 which states that the provisions of section 172 would apply in such cases and no deduction of taxes required as per section 194(c) - CIT(A) has correctly appreciated the facts and position of law in deleting the additions made by the AO – thus, there is no infirmity in the order of the CIT(A) – Decided against Revenue. Admission of additional evidence in violation of Rule 46A of the Rules – Held that:- The contention of the Revenue could not be accepted because revenue could not specifically point out the additional evidences relied by the CIT(A) – Decided against Revenue. - ITA No. 105/Mum/20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e said parties on the reason that the said payments were made in respect of freight charges, terminal handling charges paid to the parties and the same were reimbursed by the assessee and hence the payments that not required for the deduction of TDS u/s 194(c) of the Act. Some of the other additions were deleted by the Ld.CIT(A) on the reason that the payments were below Rs.20,000/- and hence the assessee was not liable to deduct TDS. Aggrieved by the impugned order, the Revenue is in appeal before us. 4. Having heard both the sides and perused the material on record, it is pertinent to mention that the total payment made to M/s. Afford Logistics Pvt. Ltd amounting to Rs.10,27,164/- is towards Ocean Freight, Agency charges and Palletisat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provisions of TDS are not applicable. Regarding the addition of Rs.63240/- made by the AO in respect of M/s. S.K. International, the Ld.CIT(A) has brought on record that the assessee has deducted TDS of Rs.558/- in respect of payment of Rs.26,900/- paid towards agency charges and hence the Ld.CIT(A) has deleted the said addition. With regard to the balance of Rs.36,340/- paid towards freight charges again this amount is reimbursement of expenditure and hence the assessee is not required to deduct TDS on this payment. In respect of the addition of Rs.1,23,402/- made in respect of payment to M/s. Samsara Shipping Pvt. Ltd, the Ld.CIT(A) has deleted the said addition by relying on the circular of the CBDT No. 723 dated 19.09.1995. The Ld.CIT( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facts and position of law in deleting the additions made by the AO, we do not find any infirmity in the said order of the Ld.CIT(A). 4.2 On the issue raised by the Revenue that the Ld.CIT(A) has admitted additional evidence in contravention of Rule 46A of the Income-tax Rules, we are not inclined to accept the said contention as the Ld.DR could not specifically point out the additional evidences relied by the Ld.CIT(A) as against the claim of the Ld.AR that all the documents produced before the Ld.CIT(A) have been made available before the AO during the assessment proceedings. In view of that matter, we uphold the order of the Ld.CIT(A). 5. In the result the appeal by the Revenue is dismissed. Order pronounced in the open court on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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