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TMI Blog2023 (4) TMI 177X X X X Extracts X X X X X X X X Extracts X X X X ..... s this argument of the ld. A/R could not be upheld because of the simple reason that as per the provisions of section 44AD(6) provisions of this section are not applicable on a person earning income in the nature of commission. Thus the said argument of the ld. A/R is not tenable. Since the revenue authorities have rightly appreciated the facts and considered the said receipts as income from other sources but still in these circumstances assessee was entitled to deduction of expenditure incurred against such receipts. Therefore, the AO is at liberty to verify the expenditure, if so claimed by the assessee within 30 days from the date of receipt of this order. With these observations, we partly allow the grounds raised by the assessee. Ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ies. In consideration they received the reimbursement of the freight charges paid to the shipping/airline companies and the commission. These companies deducted tax at source under section 194H/194C on the total amount paid to appellant. The assessee has maintained day to day books of accounts. The freight receipt is Rs. 1,05,33,700/- and the expenditure incurred there against is Rs. 90,52,139/- and accordingly the net freight charges of Rs. 14,81,570/- is credited in the Profit Loss account. After considering the expenditure debited to Profit Loss account, the net profit is Rs. 83,770/- but the income computed under normal provisions after disallowing the income tax debited to Profit Loss account is Rs. 1,21,231/-. Accordingly, asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ght, custom clearing, terminal handling charges, local transportation, loading/unloading, etc. on case to case basis. The same is credited to freight charges account. Against this the expenditure incurred is debited to freight charges account and the net amount is credited to P L A/c. Thus, the nature of services provided to all the customers is same. However, from Form No. 26AS it can be noted that 3 parties namely CP Worldlines Pvt. Ltd., Total Transport System Pvt. Ltd. and Tulsidas Khemji Pvt. Ltd. who made payment of Rs. 12,95,311/- have deducted TDS u/s194H (PB 8, 10 11). All other parties have deducted TDS u/s 194C. Even Tulsidas Khemji Pvt. Ltd., has deducted TDS u/s 194C on some amount and u/s 194H on some amount. From the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her hand, the ld. D/R supported the orders of the Revenue Authorities. 6. We have heard the ld. Counsels for both the parties, perused the material available on record and gone through the orders of the revenue authorities. As per the facts of the present case, the assessee is engaged in the business of arranging transportation from which it receives reimbursement of the freight charges paid to the shipping/airline companies and the commission. As per record, the assessee has shown gross receipt of Rs. 14,84,874/- whereas gross receipt as per Form 26AS is Rs.43,29,087/-. Out of this amount, TDS under section 194C has been deducted by the parties on Rs. 30,33,776/- and TDS under section 194H has also been deducted on Rs. 12,95,311/-. Ther ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee. Since the assessee was very much aware regarding deduction of TDS under section 194H on payment of Rs. 12,95,311/- by the parties/companies, even then no effort was made to get the same corrected from the said companies. Therefore, at this stage assessee cannot point out the defects in the orders passed by the revenue authorities. The other arguments of the ld. A/R that at the most the addition could have been restricted to Rs. 1,05,698/- being profit earned @ 8.16% in respect of these receipts. However, this argument of the ld. A/R could not be upheld because of the simple reason that as per the provisions of section 44AD(6) of the IT Act, the provisions of this section are not applicable on a person earning income in the na ..... X X X X Extracts X X X X X X X X Extracts X X X X
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