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2022 (9) TMI 1363 - ITAT DELHIDisallowance of expenses u/s 40(1)(i) - non deduction of TDS overseas group charges - HELD THAT:- Upon careful consideration, we find that the issue is covered in favour of the assessee by a series of ITAT order in assessee’s own cases [2019 (1) TMI 1990 - ITAT DELHI], [2020 (9) TMI 1270 - ITAT DELHI], [2022 (3) TMI 1424 - ITAT DELHI] and [2018 (2) TMI 1628 - ITAT DELHI] held that payment by way of reimbursement of expenses is not taxable in India. In view of the fact that the amount paid by the assessee to non-residents is not chargeable to tax in their hands and, as such, the provisions of section 195 of the Act are not attracted, there can be no question of applying section 40(a)(i) for making disallowance in the hands of the assessee. - Respectfully following the precedent, we uphold the order of ld. CIT (A) on this issue. Disallowance of Domestic payments u/s 40(a)(ia) in respect of payment to local vendors on behalf of group entities - HELD THAT:- As appellant has explained that the appellant company has deducted Tax Deducted at Source(TDS) on the expenditure which has been included in the total amount of group charges. Further, the details of said expenses along with the TDS deducted has been enclosed as Annexure 4 and relevant TDS certificates Since the appellant has deducted TDS on the expenses AO is directed to delete the addition u/s 40(a)(ia). - Decided against revenue.
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