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2012 (10) TMI 816 - ITAT MUMBAIWhether reimbursement of traveling expenses taxable as fees for technical services – Assessee is a non-resident, received a sum in lieu of reimbursement of traveling expenses – AO argued that such reimbursement is taxable as fees for technical services – Held that:- Following the decision in case of SIEMENS AKTIONGESELLSCHAFT (2008 (11) TMI 74 - BOMBAY HIGH COURT) that reimbursement of expenses is not liable to tax. Therefore, reimbursement does not have any element of income comprised therein and hence not liable to tax. In favour of assessee Whether payment of living allowance by the Indian company to expatriates as fees for technical services – Non-resident assessee deputed its personnel for rendering services to Indian companies – Indian company reimburse the living allowances as per the agreement - AO included this amount in fees for technical services – Held that:- Reimbursement does not have any element of income comprised therein and hence not liable to tax. In favour of assessee
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