Payment of statutory liabilities/miscellaneous expenses, etc made by the assessee to the C & F agency not covered u/s 194C

(c) The learned CIT(A) on the facts and in the circumstances of the case and in law, erred in not appreciating the facts that clarification in view of Circular: No. 715, dated 8-8-1995 clearly states that any payment to C & F agent including reimbursement is contract.”

The brief facts in relation to the ground may be noticed. In the relevant accounting year the assessee debited Rs. 39,566/- under the head “C & F expenses”. In the course of the assessment proceedings, the assessee was required to furnish the party-wise details of the expenses and explain whether any tax was deducted at source as required by section 194C of the Act. In response to the same, the assessee submitted that C & F agency charges were paid to M/s. Vidhi Enterprises and Jayashree Shipping being their charges as agent of the assessee and that C & F expenses are reimbursement of expenses such as customs duty, food stuffing charges, DEPB licence/ miscellaneous expenses, conveyance and other charges paid.   It was further submitted that considering the nature of the expenses, no tax was required to be deducted at source.