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TMI Blog2016 (12) TMI 1665X X X X Extracts X X X X X X X X Extracts X X X X ..... ing with the provisions of TDS with due remittance thereon. In respect of the balance sum of ₹ 43,978/-, the ld AR argued that the same only represents petty freight and transportation expenses incurred on various dates throughout the year by making payments to various parties which do not warrant any deduction of tax at source in view of the limit prescribed u/s 194C of the Act. We find that the assessee had furnished the details of various expenses as and when called for by the ld AO during the course of assessment proceedings. We find lot of force in the argument of the ld AR that this is a general routine business expenditure incurred by the assessee and accordingly have no hesitation in directing the ld AO to delete this disallow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ish the name, full mailing address with amount of the parties to whom it paid the charges together with the deduction and remittance of TDS thereon to the Government account. The assessee replied that the entire amount was paid to one concern viz. National Trading Co. of 3, Amratala Street, Kolkata 01 and stated that no deduction of tax at source was made on the said payment as the said payment was made only on account of office rent, salary, maintenance charges etc during the year, wherein National Trading Co. had incurred certain office expenditure on behalf of the assessee which were later on reimbursed to them but the said payments were nomenclatured as trade handling charges . However the ld AO not satisfied with the reply proceeded ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of this issue in the light of the second proviso to section 40(a)(ia) of the Act. 2.3. We have heard rival submissions and gone through the facts and circumstances of the case. We find that in the light of the decision of the Hon ble Delhi High Court and Hon ble Calcutta High Court cited supra, if the payee has disclosed the said receipt in his return and paid taxes thereon the assessee should not be invited with disallowance u/s. 40(a)(ia) of the Act by treating him as the assessee in default. We direct the AO to verify the same and dispose of the issue accordingly. Ground No.1 of appeal of assessee is allowed for statistical purposes. 3. The last issue to be decided in this appeal is as to whether the ld CITA is justified in upho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the business of the assessee, these expenses are nothing but the routine freight and transportation charges falling outside the ambit of TDS provisions due to the respective limit prescribed u/s 194C of the Act. Accordingly he prayed for allowing the entire expenditure as a deduction from business income of the assessee. In response to this, the ld DR stated that for the remaining sum of ₹ 43,978/-, no details were furnished by the assessee and hence the disallowance may be restricted to such amount. 3.3. We have heard the rival submissions and perused the materials available on record including the paper book filed by the assessee in this regard. We find that the details for ₹ 3,25,104/- have been duly filed by the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X
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