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TMI Blog2022 (3) TMI 129X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee had only reimbursed the same i.e. freight/transport charges incurred by them was given back to the agents. Without appreciating this fact, according to Ld. A.R. the AO has disallowed the same u/s. 40(a)(ia) of the Income-tax Act, 1961 (hereinafter referred to as the "Act") read with section 194C of the Act. According to Ld. A.R, this issue is no longer res-integra and the Ld. AR drew our attention to the decision of this Tribunal in the case of Satyendra Jhunjhunwala Vs. ITO in ITA No.1988/Kol/2009 for AY 2005-06 dated 11.11.2011 wherein the Tribunal held that the issue of reimbursement of customs duty charges and other charges which are incurred by agents on behalf of the assessee cannot be subject matter of TDS. It is noted t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orporation Ltd. Assessment Year 2005-06 dated 03.04.2009, wherein it has been held as under: "We have carefully considered the submissions of the Ld. Representatives of both the parties and the orders of the authorities below. We have also perused the copy of consignment of sale agreement entered into by the assessee and M/s. Beharilal & Co. It is a fact that if the assessee reimbursed the expenses towards freight incurred on its behalf under an agreement for which separate bill is raised, and to such payments the provision of section 194 of the I. T. Act is not attracted. The above issue has been considered by the ITAT Delhi Bench in the case of Willmar Schwabe India (P) Ltd. (supra), wherein it has been held that if there is reimbursem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income and the payment is only as a reimbursement of expenses incurred by the payee, then no disallowance can be made u/s. 40(a)(ia). In the case in hand, the A.O. has not given a finding that the expenses were for office upkeeping as revenue receipt in the hands of Reliance Energy Ltd. and not a pure reimbursement of expenses. Respectfully following the decision of the Hon'ble jurisdictional High Court (supra), we decide this issue in favour of the assessee and against the Revenue." We find that the issue of reimbursement of customs duty charges and other charges which are incurred by agents on behalf of assessee cannot be subject matter of TDS in view of above cited case laws. Respectfully following these case laws, we allow the claim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bought leave and (iii) tea manufacture out of home grown leave. According to the Ld. AR, the assessee has undergone scrutiny assessment for decades and the assessee has been following the same method of estimating/computing the profits which has not been disturbed in any of the earlier years/subsequent years that too in scrutiny proceedings. Therefore, the Ld. AR relying on the decision of the Hon'ble Supreme Court in the case of Radhasoami Satsang Vs CIT (193 ITR 321), wherein the Hon'ble Supreme Court has held that if the facts permeating in the earlier years are the same and the department has accepted the computation of income in the earlier years, then in such a case the assessment on the issues which has been accepted by the departme ..... X X X X Extracts X X X X X X X X Extracts X X X X
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