Case Law Details
ITO Vs Deepak Bhargawa (ITAT Delhi)
In this case the appellant is receiving the material on Freight Prepaid basis (C&F). The foreign shipping companies were charging only the incidental charges like Port charges, Container payment, Stationery charges, License fees, Stamp charges, Bank charges, De-stuffing charges etc. These bills also include part payment of import duty paid by the appellant. Since Import Duty & Port charges are payment to Govt, as per provisions of law T.D.S. is not deductable. Other expenses which were reimbursed are also not subjected to T.D.S. In view of the facts and circumstances of the case the disallowance made by the assessing officer of Rs.18, 16, 637 under section 40a(ia) is uncalled for and is therefore deleted.
Full Text of the ITAT Order is as follows:-
This appeal at the instance of the Department is directed against the Commissioner (Appeals) order dated 14-11-2011. The relevant assessment year is 2007-08.
2. Though five grounds are raised in this appeal, all the grounds, relates to the issue of disallowance of two payments of Rs.18,16,637 and Rs.9,00,300 by invoking the provision of Section 40(a)(ia) of the Income Tax Act.
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