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TMI Blog2022 (3) TMI 72X X X X Extracts X X X X X X X X Extracts X X X X ..... rry freight is paid by M/s. Rukmini Rama Steel Rollings Pvt. Ltd. on its own account and not on behalf of the assessee. We are of the view that it cannot be said that the liability to deduct tax at source would fall upon the assessee, merely for the reason that the assessee has disclosed freight charges separately. Accordingly, we are unable to agree with the view expressed by the Ld. CIT(A). Accordingly, we set aside the order passed by Ld. CIT(A) on this issue and direct the A.O. to delete the disallowance made u/s. 40(a)(ia) of the Act during the year under consideration. - Appeal of assessee allowed. - ITA No. 665/Bang/2016 - - - Dated:- 21-2-2022 - N.V. Vasudevan, Vice President And B.R. Baskaran, Member (A) Appellant by : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duties. It was submitted that the freight was shown separately in order to avoid litigation with the excise authorities. Accordingly, it was submitted that though the freight was shown separately in the books of accounts, it forms part of cost of purchases. It was also submitted that freight charges was actually paid by M/s. Rukmini Rama Steel Rollings Pvt. Ltd. and in most of the cases, the actual freight paid by the above said company does not tally with the amount collected from the party. It was submitted that the business model of the assessee is that it places order with M/s. Rukmini Rama Steel Rollings Pvt. Ltd. and request them to supply the materials directly to its customers. Hence, the materials go directly to the customer's ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... above fact. It is stated that the business model of the assessee is that order placed by the assessee is directly dispatched by the above said company to the assessee's customer place. Accordingly, when the goods are forwarded, it is the supplier i.e. M/s. Rukmini Rama Steel Rollings Pvt. Ltd. which books the lorry and forward the goods to the customer place of the assessee. So there should not be any doubt that it is the above said company which engages the lorry and not the assessee. The question that arises is whether M/s. Rukmini Rama Steel Rollings Pvt. Ltd. engages the lorry on its own account or on behalf of the assessee. The A.O. has taken the view that the lorry freight is paid on behalf of the assessee. However, M/s. Rukmini R ..... X X X X Extracts X X X X X X X X Extracts X X X X
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