No TDS required to to be deducted on Reimbursement of expenses against separate bills to C&F agents

Reimbursement of expenses against separate bills to C&F agents doesn’t require TDS and hence no dis allowance u/s 40(a)(1a)… ITAT Cochin bench held in the case of Assistant Commissioner of Income Tax (TDS) Vs St. Mary’s Rubbers Private Limited dismissing revenue’s appeal.

Amounts paid by way of reimbursement of expenses do not constitute income in the hands of the recipient. Consequently, the payer is under no obligation to deduct TDS u/s 194C and no dis allowance of the expenditure can be made u/s 40(a)(ia).

Full Text of ITAT Order is as follows:-

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