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TMI Blog2022 (9) TMI 762X X X X Extracts X X X X X X X X Extracts X X X X ..... hese grounds of the appeal of the assessee and the same are accordingly dismissed. Addition u/s 40(a)(ia) - assessee has not deducted TDS on the payments made under the head freights and insurance to various parties - amount had been debited under the head advertisement expenses whereas, the assessee had not deducted the TDS in respect of that payment also - HELD THAT:- As in respect of advertisement expenses the assessee furnished details before the CIT(A) to show that the TDS was duly deducted against such expenses. CIT(A) after going through the documents furnished by the assessee verified the ledger account and held that the TDS was duly deducted on the payments made and accordingly deleted the addition so made by the Assessing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... grounds either before the appellate proceedings, or in the course of appellate proceedings. 2. Ground No.1 2 The appellant is a dealer and retailer of Hero Honda two wheelers and deals primarily in products of Hero Motor Corporation. During the assessment proceedings, the Assessing Officer found that the appellant had taken advances in cash from its customers amounting to Rs.4,72,37,518/- against booking of Hero Honda motorcycles. The Assessing Officer deputed an Inspector to conduct field enquiries in respect of certain select customers. The Inspector reported that none of those customers have paid advance to the appellant. The Assessing Officer also recorded the statement of one of the customers who denied having paid any advance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aid customer as compared to the sale price shown by the assessee in his accounts. It was not the case of the Department that the final bill did not tally. The ld. Counsel for the assessee has further relied on the decision of the Calcutta High Court in the own case of the assessee for assessment year 2010-11 vide GA 1116 of 2016/ITAT 142 of 2016 vide order dated 17.05.2016, wherein, the jurisdictional Calcutta High Court in the similar circumstances has held as under: The assessee may not have maintained detailed record of the customers. But question is whether the receipt has satisfactorily been established to be on account of advance payment. That question has been answered by the learned Tribunal in the affirmative by holding as fol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /s 40(a)(ia) of the Act. 6. During the assessment proceedings, the Assessing Officer noticed that the assessee has not deducted TDS on the payments made under the head freights and insurance to various parties totaling to Rs.93,55,197/- . He, therefore, disallowed the said expenditure u/s 40(a)(ia) of the Act. The Assessing Officer further noted that an amount of Rs.8,58,786/- had been debited under the head advertisement expenses whereas, the assessee had not deducted the TDS in respect of that payment also. He, therefore, disallowed the said expenditure of Rs.8,58,786/- also u/s 40(a)(ia) of the Act. 7. In appeal, the assessee in respect of freight and insurance charges made the following submissions: Freight insurance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t and insurance amounting to Rs.93,55,197/- is not tenable. The ld. CIT(A) considering the above submissions and going through the sample copy of the invoice held that the total amount charged by the Hero Moto Corp Ltd. was inclusive of transportation and insurance charges. The supplier of motorcycles to the assessee i.e. Hero Moto Corp has raised composite bill to the assessee, wherein, the entire charges were payable by the assessee to Hero Moto Corp. Ltd. The ld. CIT(A) observed that it was clear from the invoices that the assessee did not pay any amount to any transporter under any contract, written or oral. Therefore, the ld. CIT(A) deleted the addition made by the Assessing Officer in this respect, observing as under: 9.1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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