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2023 (7) TMI 83 - ITAT JAIPURTDS on reimbursement of expenses - demand u/s. 201(1) along with levy of interest u/s. 201(1A) - HELD THAT:- The assessee has raised debit note on which there is no profit element and therefore the AO cannot fastened the liabilities of TDS as there is clear absence of profit component and it is actual reimbursement and from the records available, assessee has produced all documents where it is evidences it is an actual reimbursement and where individual is shown proves that there is no profit component. The decision relied upon the ld. Ld. DR wherein the absence of material it was held that the assessee has not proved that the same is of pure reimbursement in nature. In support, reliance was placed on case of CIT vs. Kalyani Steels [2018 (5) TMI 152 - KARNATAKA HIGH COURT] and Zephyr Biomedicals [2020 (10) TMI 370 - BOMBAY HIGH COURT] wherein the Board Circular has been taken into consideration, we come to the conclusion that reimbursement of expenses were earlier incurred by a person on behalf of another or covered as such where there is no element of profit in such reimbursement and when that reimbursement has sufficient supporting documents that no TDS is required to be deducted by the assessee on reimbursement of actual expenses incurred by the RWPL and we set aside the order passed by the ld. CIT(A). Hence, the appeal is being allowed.
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