M/S. HIND SAMACHAR LIMITED,JALANDHAR vs. THE DY. COMMISSIONER OF INCOME-TAX, JAANDHAR CITY

ITA 198/ASR/2012Status: DisposedITAT Amritsar31 August 2026AY 2007-0819 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that payments to press reporters and photographers for intellectual services are not covered under Section 194C or 194J. Reimbursement of railway freights paid to CONCOR was also held to be outside the purview of Section 194C. The Tribunal deleted the addition on account of FBT as the items were distributed to outsiders for a readers' survey and not to employees.

What were the facts?

The assessee, The Hind Samachar Ltd., appealed against additions made by the AO and upheld by the CIT(A). The issues involved disallowances under Section 40(a)(ia) for reimbursement payments and railway freights, prior period expenses, and advertisement/sales promotion expenses, as well as Fringe Benefit Tax (FBT) on items distributed during a readers' survey.

What were the issues?

Whether disallowances under Section 40(a)(ia) are valid for payments to press reporters and for railway freight reimbursements, and whether expenses on items distributed during a readers' survey are subject to FBT.

Which sections of the Income-tax Act were involved?

Section 40(a)(ia),Section 194C,Section 194J

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AMRITSAR BENCH, AMRITSAR.

Before: SH. S. RIFAUR RAHMAN & SH. UDAYAN DAS GUPTA

For Appellant: CA and Sh. Sudhir Sehgal
Hearing: 21.07.2026Pronounced: 31.08.2026

Per: Udayan Dasgupta, JM:

ITA – 198 / ASR / 2012 Asst year : 2007-08

1.

This appeal is filed by the assessee against the order of the Ld CIT(A), Jallandhar passed u/s 250 of the Act ‘61 dated 29/03/2012,( disposing of two appeals in Appeal No 489 and 491 / 10-11/CIT9A)/ Jal.) which has arisen out

I.T.A. No.6& 198/Asr/2012 And other group cases 2

of the DCIT , Circle – III, Jalandhar, order dated 14/01/2011 passed u/s 143(3).

Ground No: 1: The ground of appeal is withdrawn by the Ld AR and as such the same is dismissed as not pressed.

2.

Ground No 2 ( a ) Addition of Rs. 13,53,693/- u/s 40(a)(ia) on account of Reimbursement payments: The Ld AR of the assessee in c

The order continues below.

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