TMI Blog2014 (8) TMI 796X X X X Extracts X X X X X X X X Extracts X X X X ..... able to be remitted back to the AO – Decided in favour of Assessee. Reimbursement of expenses – Scope of criterial of reimbursement – Held that:- Following the assessee’s own case as decided in Shell International BV. Carel Van Bylandtlaan Versus Income Tax Officer [2013 (8) TMI 446 - ITAT AHMEDABAD] - this ground was not decided by CIT(A) and the question of claim of reimbursement of expenditure was not made before the AO - The assessee has required to establish that those expenditures were first incurred out of pocket expenses then only the question of reimbursement can be decided - The assessee is also required to furnish the details of the bills through which the reimbursement was claimed since all those facts were not earlier examined by the Revenue Authorities – thus, the matter is to be remitted back to the AO for fresh adjudication – Decided in favour of Assessee. - ITA No. 2117/Ahd/2010 - - - Dated:- 8-8-2014 - Sri G. C. Gupta And Shri Anil Chaturvedi,JJ. For the Petitioner : Sri Ankit Gandhi For the Respondent : Sri Nimesh Yadav, Sr. D.R. ORDER Per : Anil Chaturvedi, Accountant Member:- This appeal is filed by the assessee against the order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted in earlier years wherein his predecessor had come to the conclusion that the services provided were in the nature of consultancy and were technical in nature. He was further of the view that the facts in the case in the year under appeal were similar to earlier years and therefore the payment received by the assessee were in the nature of fees for technical services and they fall within the Article 12 of India-Netherland DTAA. He accordingly rejected the submissions of the assessee and upheld the order of AO. Aggrieved by the order Ld. CIT(A), Assessee is now in appeal before us. 5. Before us, at the outset Ld. AR submitted that on identical facts in assessee s own case for A.Y. 2003-04 in ITA No. 1150/Ahd/2007, the issue was before Hon ble Tribunal and the same was decided in favour of the assessee by Hon ble Tribunal vide order dated 07/08/2013. He also placed on record the copy of the aforesaid order of the Tribunal and pointed to the relevant findings at page 24-25 of the order. He further submitted that since the facts of the case in the year under appeal are identical to that of earlier years, the addition made by AO be deleted. Ld. DR on the other hand supported the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nditure to ascertain the nature of services rendered and then find out that whether could have been made available for the business purpose of those parties? 5.1 In the light of the above discussion and the reasons assigned hereinabove, we hereby restore ground no. 1 back to the stage of the AO. This ground is hereby allowed only for statistical purpose. Since the fact of the case in the present case is similar that of earlier years we therefore respectfully following the order of the Co-ordinate Bench cited hereinabove and for similar reasons and with similar directions restore the ground to the file of AO. In the result, this ground of assessee is allowed for statistical purpose. Ground No. 2 is with respect to reimbursement of expenses. 7. During the course of assessment proceedings AO noticed that assessee had shown receipts of ₹ 1,04,72,268/- as reimbursement of expenses and out of which only ₹ 21,91,978/- has been offered for tax as per DTAA. AO was of the view that the expenses reimbursed to the assessee and disbursement to sub-contractor were in connection to the services rendered and they assume the same character as the main consideration and are the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contract and therefore, should have had the nexus with the services being rendered by the appellant to their party. 3) The expenses should be of the types which are covered by the exclusionary clause talking of the direct payments on actual basis, e.g. Article 2.6. etc. 3.7 Unless the appellant leads the Assessing Officer through these motions for each and every receipts claimed, the exclusion merely on the basis of logic of reimbursement would not hold sway. 3.8 Therefore, while the appellant s ground of appeal is accepted in principle, but the Assessing Officer is directed to verify the appellant's claim on the above referred lines and grant relief to those items of expenses which meet the above referred criterion of reimbursement. The appellant is expected to cooperate in furnishing the relevant information on the above lines to come to a proper quantification of assessable income. 3.9. It is further clarified that after the completion of the above verification, if any expense is not covered by the criterion of reimbursement, it will have to be treated as part of the FTS only. This is so because as has been held in the earlier ground, the agreement has to be rea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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