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TMI Blog2019 (4) TMI 1379X X X X Extracts X X X X X X X X Extracts X X X X ..... ntation charges and other payments viz, handling charges, rent etc - reimbursement of actual expenditure - pure agent - HELD THAT:- Since the assessee has not laid proper materials before the AO during the course of assessment, these issues are remitted back to the file of the AO for a fresh examination. The assessee shall place all the materials in support of its contentions and comply to the requirements of AO in accordance with law. AO after affording adequate opportunity to the assessee shall pass a speaking order. The corresponding grounds are treated as partly allowed for statistical purposes. - I.T.A. No.3157/Chny/2016 - - - Dated:- 6-3-2019 - Shri George Mathan, Judicial Member And Shri S. Jayaraman, Accountant Member ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ments, and further the invoices raised by the company does not indicate that the payments are reimbursements ?. 2.2. The learned CIT(A) ought to have appreciated the fact that, the relationship between the assessee and the payees is not Principal- Agent relation in order to recognize the payments as reimbursements, and further such payments are not supported by written agreements or contracts, indicative of reimbursements , and therefore liable for Tax deduction at source. 2.3. The learned CIT(A) failed to appreciate the fact that, if the relationship between the assessee (deductor) and the payee (deductee) is Principal- Agent relation, there ought to be commission payments for the services rendered by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g line charges, documentation charges at ₹2,95,95,144/- and handling charges, rent paid for storage of goods, cost of consumables of ₹74,71,127/-, the Ld. AR submitted that TDS is not required to be deducted for reimbursement of actual expenditure incurred on behalf of the customer as : a. The assessee acted on behalf of its customers- for the goods transported belonged to the customers. b. The assessee is never the owner of the goods kept in the warehouse. c. In case of damages to the cargo while being kept in the premises of the aforesaid concerns, the claim can be made only by the owner of the goods. d. Duties and taxes in respect of the goods is the liability of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n an opportunity to the Assessing Officer to examine these issues. However, based on the assessee s plea, the Ld.CIT(A) allowed the appeal. Therefore, Ld. DR pleaded that the Revenue s appeal may be allowed. 6. We heard the rival submissions and gone through the relevant material. As rightly pleaded by the Ld. AR , the issue in connection with the freight charges to shipping lines airlines does not survive, since the Assessing Officer has accepted the assessee s stand in his subsequent order passed u/s.154. In respect of airport/port charges, since these were reimbursed by the clients of the assessee to the assessee towards the monies defrayed by the assessee towards these authorities, the CIT(A) has rightly deleted the add ..... X X X X Extracts X X X X X X X X Extracts X X X X
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