IN THE HIGH COURT OF DELHI AT NEW DELHI 
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   ITA 1279/2011  
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 CIT            ..... Appellant 
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 Through: Ms.Suruchi Agarwal, Sr. Standing 
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 counsel. 
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 versus 
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 ONS CREATIONS PVT LTD     ..... Respondent 
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 Through: Mr.Ved Jain, Adv. 
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 CORAM: 
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 HON'BLE MR. JUSTICE SANJIV KHANNA 
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 HON'BLE MR. JUSTICE R.V.EASWAR 
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 O R D E R 
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     14.12.2011 
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 The Assessing Officer had made addition of Rs.30,66,703/- and 
 Rs.8,84,881/- under Section 40(a)(ia) of the Income Tax Act, 1961 (Act 
 for short) on account of failure of the assessee to deduct tax at source 
 (TDS) under Section 194C of the Act. 
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 The CIT (Appeals) and Income Tax Appellate Tribunal have deleted 
 the said addition.  With regard to addition of Rs.30,66,703/- the two 
 appellate authorities have concurrently held that this payment was not on 
 account of service charges paid to the forwarding and clearing agents but 
 represents payments of the actual and exact freight charges which were 
 paid to the Airlines for export of the goods.  Learned counsel for the 
 appellant has relied upon circular No.715 dated 8th August, 1995 wherein 
 it is observed that when a composite bill with regard to service charges 
 payable to the forwarding and clearing agents and transportation charges 
 is raised, TDS should be deducted.  In the present case, the findings 
 recorded by the CIT(Appeals) and Income Tax Appellate Tribunal are that 
 the composite bills were not raised.  The payments in question were 
 towards the reimbursement of the exact amount which has been paid to the 
 airlines towards freight charges. There is no finding that these agents 
 deliberately separated/bifurcated the bills and service charges were 
 independently paid or were included in the said bills. 
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 With regard to the second addition of Rs.8,84,881/-, the concurrent 
 findings recorded by the CIT(Appeals) and ITAT are that the said payments 
 were less than Rs.50,000/- to a single party and, therefore, TDS under 
 Section 194C was not required to be deducted.  Learned counsel for the 
 appellant has drawn our attention to the grounds of appeal in which it is 
 stated that as per the books of accounts some of the parties were made 
 payment of more than Rs.50,000/- in aggregate.   Copy of the account book 
 has not been filed along with the grounds of appeal. The names and 
 details of the said parties are not indicated.  It is not stated that 
 this contention was raised before the Tribunal and copy of the account 
 book was filed before the tribunal. 
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 In view of the above, we do not find any merit in the appeal and 
 the same is dismissed.  No costs. 
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 SANJIV KHANNA,J 
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 R.V.EASWAR, J 
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 DECEMBER  14, 2011 
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 Vg/Bisht 
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 $ 18 
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