| The Tax Publishers2020 TaxPub(DT) 3621 (Visakhapatnam-Trib) INCOME TAX ACT, 1961
Sections 250
Where CIT(A) had issued only one notice, fixing the case for hearing and decided the appeal on the basis of written submissions and he ought to have given one more opportunity in the interest of justice, since appeal was decided without being personally heard the assessee and therefore, assessee was required to be given an opportunity to present its case before CIT(A) and mater was remanded back to CIT(A) with a direction to examine whether the expenditure in question i.e., reimbursement of expenses attracts TDS or not.
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Appeal [CIT(A)] - Order of Appeal - Appeal decided on basis of written submission, without personal hearing - Transportation charges, security service charges and interest payment--Disallowance under section 40(a)(ia)
Assessee made payments towards transportation charges, security service charges and interest to Mr. T. AO further found that the transportation charges as well as the security charges are in the nature of contract payments and TDS required to be made under section 194C. Similarly, interest paid to Mr. T attracted TDS under section 194A and assessee failed to deduct the TDS. Assessee argued that he was a C&F agent, transportation charges and security charges were in the nature of reimbursement of expenses, thus submitted that no TDS required to be made on account of transportation charges as well as security charges. In respect of interest payment, he argued that he obtained Form 15G and filed with CIT, hence, no TDS required to be made. However, AO disallowed the expenditure under section 40(a)(ia). Held: This appeal was decided without being personally heard the assessee. On identical issue in the case of M/s Annavarapu Enterprises ([I.T.A.No.13/Viz/2016 dated 30-8-2017] this Tribunal had decided the issue in favour of assessee. Similarly, CIT(A) for the A.Y.2006-07 and 2008-09 in the case of M/s Annavarapu Enterprises (1989) decided the appeal in favour of assessee and deleted the addition. Therefore, in the interest of justice, assessee was required to be given an opportunity to present its case before CIT(A) and mater was remanded back to CIT(A) with a direction to examine whether the expenditure in question i.e., reimbursement of expenses attracts TDS or not.
Followed:ITO v. Annavarapu Enterprises [I.T.A.No.13/Viz/2016 dated 30-8-2017
REFERRED :
FAVOUR : Matter remanded
A.Y. : 2006-07
IN THE ITAT, VISAKHAPATNAM BENCH
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