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2015 (8) TMI 36 - AT - Income TaxDisallowance under section 14A - CIT(A) restricted addition to 2% as against 10% disallowed by the Assessing Officer - Held that:- CIT(Appeals) restricted disallowance under section 14A to 2% relying on the decision of the co-ordinate Bench of this Tribunal in assessee’s own case for the assessment year 2001-02. Thus we do not find any infirmity in the order passed by the Commissioner of Income Tax (Appeals) - Decided against revenue. Disallowance u/s 40(a)(i) in respect of the amounts paid by the assessee to M/s. Amalgamation Pvt. Ltd. - Non deduction of TDS - CIT(A) deleted addition - Held that:- It is understood from the facts of the case that Amalgamation Pvt Ltd is a holding company under which several other group companies are working. Whatever expenditure is incurred by the holding company in London to share the office space, advertisement expenses, travelling, telephone charges etc., are being shared by all of them as per the understanding they had with the holding company. The share of expenditure paid by the subsidiary companies are in the form of reimbursement of expenditure incurred by the holding company on behalf of subsidiary companies. Since the reimbursement of expenditure by the holding company is not leading to any accrual of income in the hands of that company, the question of making TDS on such income does not arise. Further the amounts paid outside India in the instant case are not falling under either royalty, interest or fee for technical services, therefore they are not chargeable to tax in India. The decision of the Hon'ble Supreme Court in the case of G.E. India Technology Centre P Ltd, (2010 (9) TMI 7 - SUPREME COURT OF INDIA) comes to the rescue of the appellant.- Decided against revenue.
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