Smt. Saroj Malik, New Delhi V. ITO, New Delhi

ITA 3346/DEL/2011

• Counselvise Citation: 334620114 RSA 2011
• Duration Of Justice: 2 year(s) 3 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-10-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 22-10-2013
• Assessment Year: 2007-2008
• Appeal Filed On: 27-06-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NIDDI SRIVASTAVA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: G NEW DELHI BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI T. S. KAPOOR, ACCOUNTANT MEMBER I.T.A .NO.-3346/DEL/2011 (ASSESSMENT YEAR-2007-08) SMT. SAROJ MALIK VS. ITO C/O O.P. SAPRA & ASSOCIATES, WARD-28(1) ADVOCATES C-763, NEW FRIENDS COLONY NEW DELHI. NEW DELHI. 110025 PAN: AAKPM7355A (APPELLANT) (RESPONDENT) ASSESSEE BY:-SH. SANDEEP SAPRA, ADV. REVENUE BY:-SMT. NIDDI SRIVASTAVA, SR. DR ORDER PER RAJPAL YADAV JM. THE ASSESSEE IS IN APPEAL BEFORE US AGAINST THE ORD ER OF LD. CIT (A) DATED 28.04.2011 PASSED FOR A.Y. 2007-08. 2. THE SOLITARY GRIEVANCE OF THE ASSESSEE IS THAT L D. CIT (A) HAS ERRED IN CONFIRMING THE ADDITION OF RS.3,17,738/-. 3. WITH THE ASSISTANCE OF LD. REPRESENTATIVE, WE HA VE GONE THROUGH THE RECORD CAREFULLY. THE LD. AO HAS OBSERVED THAT ASSE SSEE MADE PAYMENT OF 2 FREIGHT AND FORWARDING CHARGES AMOUNTING TO RS.3,17 ,738/- TO M/S SAHYOG FREIGHT FORWARD INDIA PVT. LTD. WITHOUT DEDUCTING T HE TAX AT SOURCE, HENCE HE DISALLOWED THE CLAIM OF EXPENDITURE U/S 40 (A) (IA) . APPEAL TO THE CIT (A) DID NOT BRING ANY RELIEF TO THE ASSESSEE. LD. COUNS EL FOR THE ASSESSEE, DREW OUR ATTENTION TOWARDS THE COPIES OF THE BILLS VIDE WHICH PAYMENT WAS MADE, HE POINTED OUT THAT AGENCY CHARGES ARE LESS THAN 20 ,000/-. THE AO HAS NOT POINTED OUT WHETHER TDS WAS TO BE DEDUCTED U/S 194J , H, I, THE AO HAS NOT MENTIONED ANY SECTION WHICH HAS BEEN VIOLATED BY TH E ASSESSEE, HE HAS NOT LOOKED INTO THE PAYMENTS MADE BY THE ASSESSEE. AFTE R CONSIDERING THE REIMBURSEMENT OF ACTUAL EXPENSES, IF AGENCY CHARGES ARE TO BE LOOKED INTO THEN, THERE ARE LESS THAN 20,000/- AND NO TDS WAS T O BE DEDUCTED BY THE ASSESSEE. 4. THE LD. DR ON THE OTHER HAND POINTED OUT THAT TO TAL PAYMENT TOWARDS FREIGHT AND FORWARDING CHARGES IS TO BE CONSIDERED SHOWING INVOLVEMENT OF ELEMENT OF INCOME. THE ASSESSEE WAS TO DEDUCT TDS O N THE WHOLE PAYMENT INCLUDING THE ALLEGED REIMBURSEMENT OF EXPENSES, BE CAUSE THE ELEMENT OF INCOME IN THOSE REIMBURSEMENT IS ALSO INVOLVED. 5. ON DUE CONSIDERATION OF THE FACTS AND CIRCUMSTAN CES, WE FIND THAT NEITHER THE AO NOR LD. CIT (A) HAS LOOKED INTO THES E ASPECTS, THE NATURE OF EXPENSES/NATURE OF PAYMENT HAS NOT BEEN CONSIDERED FROM THE BILLS AND 3 INVOICES, THEREFORE, WE REMIT THIS ISSUE TO THE FIL E OF THE AO FOR RE- VERIFICATION AND RE-ADJUDICATION. IN VIEW OF THE AB OVE DISCUSSION, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES . ORDER PRONOUNCED IN THE OPEN COURT ON 24/10/2013. SD/- SD/- ( T. S. KAPOOR ) (RAJP AL YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBE R DATED: 24/10/2013 *AK VERMA* COPY FORWARDED TO: 1.APPELLANT 2.RESPONDENT 3.CIT 4.CIT(APPEALS) 5.DR: ITAT ASSISTANT REGISTRAR