Acit, Circle-8(2), Kolkata, Kolkata vs M/S. Nissin Abc Logistic Pvt. Ltd., ... on 5 April, 2019
9. We have heard rival submissions and gone through the facts and circumstances of the
case. We note that the assessee before the Ld. CIT(A) has filed relevant documents to
substantiate that Rs.15,91,602/- was paid towards reimbursement of expenses borne on
behalf of the assessee to some parties. The details were filed on 08.10.2014 before the Ld.
CIT(A) who in turn have called for the remand report from the AO. The expenses incurred
on behalf of the assessee did not had any service fee in it to the payee, so, there is no
component of income to the parties to whom payments were made by assessee. Since the
assessee filed the complete details of the reimbursement and copies of the respective invoice
raised by such parties along with the supporting invoices along with the submission dated
08.10.2014, the Ld. CIT(A) has accepted the submission of the assessee that the
expenses/payments made by the assessee wherein the nature of reimbursement with no
element of income which is chargeable to tax and also no part of such payment was made by
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ITA No.641/Kol/2017
Nisasin ABC Logistic Pvt. Ltd, AY- 2010-11
the assessee towards carrying of any work/service by the said parties. The payments were
in the nature of taxes etc. which was paid by the respective parties on behalf of the assessee
where no withholding of taxes is necessary. The Ld. CIT(A) had taken note of the decision
of the Hon'ble Calcutta High Court in the case of Hightension Switchgears Private Limited
Vs. CIT, ITA 8 of 2011, wherein it was held by the Hon'ble High Court that TDS is not
required to be deducted on the amount reimbursed to the suppliers/vendor. We note that the
said amount of reimbursements were made primarily to two parties M/s. Siddessur Sen &
Co. (Merchants) Private Limited and M/s. Divna Shipping & Clearing Agency. Taking
note of the sample invoice filed before us, we agree with the view taken by the Ld. CIT(A)
that the expenses/payments were in the nature of reimbursement with no element of income
chargeable to tax in India or no part of such payment was made towards carrying on any
work by the parties /vendors and, therefore, taxes need not to be withheld by assessee on
such payments so, we confirm the decision of the Ld. CIT(A). Therefore, this ground of
appeal of revenue is dismissed.