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| The Tax Publishers2020 TaxPub(DT) 3418 (Karn-HC) : (2021) 277 TAXMAN 0061 INCOME TAX ACT, 1961
Section 40(a)(ia)
Where assessee was acting as clearing and forwarding agent of company and contended disallowance made under section 40(a)(ia) towards transportation charges, considering case of assessee that he was acting only as a commission agent, CIT(A) was directed to verify evidence adduced by assessee and reconsider the matter afresh.
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Business disallowance under section 40(a)(ia) - Disallowance towards transportation charges - Assessee whether merely acted as commission agent while making payments -
Assessee was engaged in business of clearing and forwarding agency for certain company for distribution of cement and other allied projects. AO made disallowance under section 40(a)(ia) of transportation charges. On appeal, Tribunal inter alia held that assessee produced evidence in case of payment made to certain party and matter was therefore, remitted for re-examination. Appeal was partly allowed, against which instant appeal was preferred. Held: Tribunal directed remand of matter to CIT(A). In view of submissions made and in facts of case, remand of case was imperative. Accordingly, it was directed that assessee shall be at liberty to adduce evidence with regard to payments made to parties, before CIT(A). Aforesaid evidence shall be considered by CIT(A) and in case, he deems it appropriate, he shall be at liberty to seek remand report from AO and thereafter decide the matter afresh in accordance with law.
REFERRED :
FAVOUR : Matter remanded.
A.Y. : 2006-07
IN THE KARNATAKA HIGH COURT
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