TDS ON REIMBURSEMENT OF EXPENSES

 ANNAVARAPU ENTERPRISES v.  INCOME TAX OFFICER WARD-2 (4) VIJAYAWADA - 2020 (9) TMI 368 - ITAT VISAKHAPATNAM - decided on 26.06.2020

TDS u/s 194C and 194A - TDS on reimbursement of expenses - Addition u/s 40(a)(ia) - HELD THAT:- This appeal was decided without being personally heard the assessee. Further the Ld.AR submitted that on identical issue in the case of M/s Annavarapu Enterprises (198 [2017 (8) TMI 1613 - ITAT VISAKHAPATNAM] this Tribunal has decided the issue in favour of the assessee. Similarly, the Ld.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 the assessee and deleted the addition.

Therefore, in the interest of justice, we are of the considered view that the assessee required to be given an opportunity to present it’s case before the CIT(A). Hence, we remit the matter back to the file of the Ld.CIT(A) with a direction to examine whether the expenditure in question i.e., reimbursement of expenses attracts TDS or not and whether the case is covered by the decision of this Tribunal as argued by the Ld.AR and decide the appeal on merits - Appeal of the assessee is allowed for statistical purpose.