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2014 (1) TMI 1701 - ITAT BANGALORETDS u/s 195 - Computing deduction under section 10A - Whether the assessee is responsible for incurring the expenses towards the employees, necessitating the reimbursement of cross charges ? - Whether these payments were liable for TDS under section 195 of the Act ? - Held that:- The assessee was the real and economic employer of the secondees from the UK Company and the reimbursement of salary costs, etc. to the UK Company was without any profit element and therefore cannot be regarded as income chargeable in the hands of UK Company, the above questions at (iii) and (iv) are answered in favour of the assessee. In other words, the reimbursement made by the assessee to the UK Company were not liable for TDS under section 195 of the Act and consequently the said payments are not liable for disallowance under section 40(a)(ia) of the Act. Since these payments have been held to be not liable to be disallowed under section 40(a) (ia) of the Act, the question of computing deduction under section 10A of the Act on enhanced income does not arise. - Decided in favour of assessee
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