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2015 (10) TMI 477 - ITAT BANGALOREDisallowance under section 40(a)(ia) - secondment of employees to the assessee in India and the reimbursement of expenses to the associated enterprise in US - CIT(a) allowed the claim - Held that:- The issues against which the Revenue has filed this appeal before us are covered in favour of the assessee by the decision of this Tribunal in assessee’s own case for the earlier assessment year. As regards the disallowance under section 40(a)(ia) is concerned, we find that the Tribunal had followed the decision of Coordinate Bench of this Tribunal in the case of IDS Software India P. Ltd. [2009 (1) TMI 363 - ITAT BANGALORE-A ] wherein the issue of secondment of employees to the assessee in India and the reimbursement of expenses to the associated enterprise in US has been considered at length and it has been held that such reimbursement of expenses are not income in the hands of the non-resident and therefore, TDS provisions are not applicable. Further, it has also been held that it is also not in the nature of fees for technical services. - Decided in favour of assessee. Disallowance under section 10A - Held that:- This issue is covered by the decision of the Jurisdictional High Court in the case of Tata Elxsi [2011 (8) TMI 782 - KARNATAKA HIGH COURT ] wherein it was held that if any item is reduced from export turnover, then the same has to be reduced from total turnover also for computation of deduction under section 10A of the Act. Merely because the department has filed an appeal before the Hon’ble Supreme Court, it does not loose its precedential value. As the Ld. CIT(A) has followed the judicial precedent on the issue in giving relief to the assessee, we do not see any reason to interfere with the same.- Decided in favour of assessee.
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