TMI Blog2014 (5) TMI 386X X X X Extracts X X X X X X X X Extracts X X X X ..... for reimbursement of the expenditure to the retail dealers - No evidence was placed as to what assessee got from the company was reimbursement of expenditure incurred by the retailers - AO is directed to establish whether the amount is expenditure by the assessee or reimbursement of expenditure on behalf of the retailers and in case, if it is an expenditure by the assessee, whether provisions of TDS are attracted and if so, to what extent of the payments made by the assessee to various dealers - thus, the matter is required to be remitted back to the AO for adjudication – Decided in favour of Revenue. - ITA. No. 916/Hyd/2013 - - - Dated:- 29-4-2014 - Shri B. Ramakotaiah And Shri Saktijit Dey,JJ. For the Petitioner : Mr. B. Yadagir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , TDS provisions were not applicable. It also relied on several judicial decisions in its support. 3. The A.O. held that the facts in the assessee s case were different from those in the cited case laws. He noted that in these decisions, the TDS provisions were held to be not applicable in respect of reimbursement of expenditure and that the assessee on the other hand, had debited the expenditure in the P L account and further, JIL had deducted TDS while making payments to the assessee. A.O. concluded that this clearly showed that JIL had debited the relevant amounts in its P L account and considered it to be expenditure on which TDS provisions are applicable and the same logic was applicable to the assessee. Accordingly, A.O. conclu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of JIL. The appellant had collected details of these expenses and raised debit notes on JIL. JIL had made payment to the appellant of these amounts which were in turn disbursed by the appellant to the retailers. It is clear from the facts that the payments are in the nature of reimbursement of expenses incurred. Indeed, the expenses have not even been incurred by the appellant but by the retailers and the appellant has merely acted as a conduit for the principal to make payment to the retailers. Following the ratio of the decisions cited above, the disallowance u/s.40(a)(ia) is set aside and the appeal is allowed. 6. Learned D.R. however, submitted that Ld. CIT(A) was wrong in deleting the addition without analyzing the facts. It was s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ill be settled within 30 days from the date of receipt of the debit notes duly supported with all vouchers signed by the retail dealers with their seal and also the APBCL invoice to vouch their lifting (of stocks). Clause-17 is that all cash payments settled by the assessee to retail dealers as per cash Schemes will be settled within 15 days from date of receipt of the debit note at the branch supported by all vouchers singed by the retail dealers. 9. Even though the above clauses state that expenses incurred by the assessee in the course of its operations will be reimbursed by the company, clause-14 pertains to the expenditure incurred by the assessee for inter-depot transfers and also to fulfill the conditions of service. This means, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so with APBCL invoice for reimbursement of the expenditure to the retail dealers. No such evidence was placed before us nor before the Ld. CIT(A) that what assessee got from the company was reimbursement of expenditure incurred by the retailers. Therefore, whether that is assessee s expenditure which was reimbursed as per clause-14 or whether retailers expenditure reimbursed under clause-16/ clause17 is to be examined. In order to decide whether this is a reimbursement of expenditure, since complete facts are not examined by the Ld. CIT(A), order of the CIT(A) accepting the assessee s contention and following various principles of law as decided in various cases is not appropriate as facts of each case differ so that common principles canno ..... X X X X Extracts X X X X X X X X Extracts X X X X
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