Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2012 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (8) TMI 307 - AT - Income TaxNon deduction of tax at source - assessee providing data processing and other IT enabled services to M/s Hewlett Packard entities(Hong Kong ) - Held that:- Considering the evidence in support the payments were purely reimbursement of expenses incurred by entities of the HP group worldwide on behalf of the Assessee which have been collated by HP,AP(HK). The details of sample employees like invoices for reimbursement made to sample employees have been given reveals the nature of reimbursement. The sample invoices filed depicts that the payments made by the assessee to HP, AP(HK) were reimbursement of actual expenses incurred by the entities of the HP Group on behalf of the assessee. No doubt, the agreement between the assessee and the HP,AP(HK) contemplates 10% mark up on the actual cost, but as far as the payments made during the previous year are concerned, no such mark up has been made and the disputed payments are purely reimbursement of actual expenses incurred with no income embedded in such payments - as decided in the case of Mahindra & Mahindra Ltd. v. Dy. CIT [2009 (4) TMI 207 - ITAT BOMBAY-H ] that in respect of reimbursement of expenses there is no obligation to deduct tax at source and there was no element of income involved in such payments - in favour of assessee.
|