LILY MINERALS,MUMBAI vs. ACIT CIR 13(3), MUMBAI

PDF · subscribers
ITA 256/MUM/2011Status: DisposedITAT Mumbai30 September 2016AY 2007-083 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that payments below the specified threshold for TDS are not subject to disallowance under Section 40(a)(ia). The issue of whether a payment constituted reimbursement was remanded to the AO for fresh examination.

What were the facts?

The assessee, engaged in export trade of processed minerals, had transportation charges of Rs. 8,18,201/- disallowed under Section 40(a)(ia) for non-deduction of TDS. The assessee argued that some payments were below the threshold for TDS applicability and one payment might be reimbursement.

What were the issues?

Whether disallowance under Section 40(a)(ia) is applicable for transportation charges where individual payments are below the TDS threshold, and whether a specific payment qualifies as reimbursement.

Which sections of the Income-tax Act were involved?

Section 40(a)(ia),Section 194(5),Section 234B,Section 234C,Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH, MUMBAI

Before: SHRI D. KARUNAKARA RAO & SHRI SAKTIJIT DEY

For Appellant: Shri Vijay Kothari
For Respondent: Shri A. Ramachandran, DR
Hearing: 29.08.2016Pronounced: 30.09.2016

सुनवाई की तायीख / Date of Hearing : 29.08.2016 घोषणा की तायीख /Date of Pronouncement : 30.09.2016 आदेश / O R D E R

PER D. KARUNAKARA RAO, AM:

1.

This appeal filed by the assessee on 11.1.2011 is against the order of the CIT (A)-24, Mumbai dated 30.11.2010 for the assessment year 2007-2008. In this appeal, assessee raised the following grounds which read as under:- “1. The Ld CIT (A) erred in disallowing u/s 40(a)(ia) an amount of Rs. 8,18,201/- being the amount of transportation charges paid to the following transporters.

1. Shivshakti Roadways Rs. 1,780/- 2. Raja Roadways Rs. 3,706/- 3. Kaka Roadways Rs. 42,340/- 4. Pearl Shipping Rs. 7,70, 375/- Total Rs. 8,18,201/-

2. The Ld CIT (A) erred in confirming the interest charged u/s 234B and 234C of the Act and in the facts and circumstances of the case and in law, the appellant denies its liability for payment of interest under any of the provisions of the Act.”

2. Briefly stated relevant facts of the case are that the assessee, who is engaged in the business of „export trade of processed minerals‟, filed the return of income declaring the total income of Rs. 90,91,430/-. Assessment was completed u/s 143(3) of the Act and determined the assessed income of Rs. 99,09,630/-. In the assessment, AO made disallowance of Rs. 8,18,201/- u/s 40(a)(ia) of the Act in respect of payments of Transportation Charges. Aggrieved, assessee carried the matter in appeal before the first appellate authority.

More judgments on Section 40(a)(ia)

All 7,300 judgments and leading authorities on Section 40(a)(ia) →

Recent GST High Court judgments

Search GST case law →