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TMI Blog2014 (7) TMI 518X X X X Extracts X X X X X X X X Extracts X X X X ..... cannot recover tax from deductor on same income by treating dedcutor to be assessee in default for short fall in its amount of tax deducted at source – thus, the matter is remitted back to the AO for fresh consideration – Decided partly in favour of Assessee. - ITA No.129/Coch/2013 - - - Dated:- 4-7-2014 - N R S Ganesan And Chandra Poojari, JJ. For the Appellant : Shri M V Tomy For the Respondent : Sri K K John, Sr (DR) ORDER:- PER : Chandra Poojari This appeal by the assessee is directed against the order dated 25th Feb 2013 of the CIT(A)-III, Kochi and its relates to the AY 2011-12. The grievance of the assessee in this appeal is in regard to the levy of interest u/s 201(1) and 201(1A) of the Act to the tune of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ists and technicians the assessee claimed that the deductees had incurred expenses and such expenses were reimbursed based on the invoice furnished by some of such deductees. The AO observed that the vendors accounts do not show entries against such reimbursement of such expenditure. Moreover, these payments are made in lump sum by cash and cheque on date wise. The AO observed that as per CBDT circular NO.715 dt 8.8.1995 any sum' paid as per sec. 194J, reimbursement of actual expenses cannot be deducted out of the bill amount for the purpose of tax deduction at sources. The expenses claimed separately and shown in the accounts are also considered and allowed while determining the demand now. According to the AO, if a deductor who is re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in respect of the recipients and the recipient has declared income in their return of income, the assessee cannot be liable for payment of TDS once again in view of the judgment of Hon'ble Supreme Court in the case of Hindustan Coca Cola Beverage P Ltd vs CIT reported in 293 ITR 226 wherein it has been held that where deductee, recipient of income, has already paid taxes on amount received from deductor, department once again cannot recover tax from deductor on same income by treating dedcutor to be assessee in default for short fall in its amount of tax deducted at source. Accordingly, we remit the entire issue to the file of the AO to consider the same afresh in accordance with law. The assessee is directed to cooperate with the depar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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