2018 (4) TMI 1948

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..... any merit. We do not find any infirmity in the order of CIT (Appeals) in confirming the addition. We remit this issue back to the file of Assessing Officer for verification. The assessee shall furnish necessary details before the AO to substantiate that the recipients of the amount i.e. the warehousing corporations have offered the amount to tax. AO shall decide this issue de-novo after considering the necessary documents furnished - Appeal of assessee is partly allowed for statistical purpose.
SHRI D. KARUNAKARA RAO, AM AND SHRI VIKAS AWASTHY, JM For the Assessee : Shri M.K. Kulkarni For the Revenue : Dr. Vivek Aggarwal ORDER PER VIKAS AWASTHY, JM : This appeal by the assessee is directed against the order of Commissioner of .....

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..... os. 1(a), 1(b), 1(c) and 1(f) are directed against the single issue of disallowance of Rs.69,27,693/- u/s. 40(a)(ia) of the Act. The ld. Counsel for the assessee submitted that the authorities below have failed to appreciate that the assessee has not paid the amount to warehousing corporations. The assessee has merely acted as conduit between the buyers of goods i.e. Bajri and the warehousing corporations. The assessee has reimbursed warehousing charges after collecting the same from the buyers of the goods stored in warehouse. Thus, in a case of reimbursement of charges, no TDS was required to be deducted by the assessee. 4. On the other hand Dr. Vivek Aggarwal representing the Department vehemently defended the findings of Commissioner o .....

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..... of Commissioner of Income Tax (Appeals) in confirming the addition. 6. The ld. Counsel for the assessee made an oral prayer that the assessee can produce necessary evidence to show that the recipient of the amount i.e. the warehousing corporations have offered the amount paid by assessee to tax if, the matter is remitted back to the Assessing Officer for verification in the light of second proviso to section 40(a)(ia) of the Act inserted by Finance Act, 2012 w.e.f. 01-04-2013. The ld. Counsel submitted that the Hon'ble Delhi High Court in the case of Commissioner of Income Tax Vs. Ansal Land Mark Township (P) Ltd. reported as 377 ITR 635 has held that the second proviso is declaratory and curative and it has retrospective effect from 01-0 .....

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