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2005 (11) TMI 382 - AT - Income TaxReimbursement of actual cost incurred - Income from advisory services - DTAA between India and USA - HELD THAT:- We have gone through the aforesaid Tribunal order in the assessee’s own case for assessment year 1996-97. The same issue, as is before us, was also considered by the Tribunal in the aforesaid order for the immediately two preceding assessment years. The Tribunal held that the question as to whether the reimbursement of actual cost incurred by the assessee could be considered as the income of the assessee, was squarely covered by the judgment of the Hon’ble Delhi High Court in the case of CIT v. Industrial Engg. Products (P.) Ltd.[1992 (7) TMI 38 - DELHI HIGH COURT], wherein it has been held that the reimbursement of expenses cannot be considered as the assessee’s income. The Tribunal, as such, held in favour of the assessee. However, the factual aspects needing verification, the Assessing Officer was directed to delete the amount of reimbursement of actual expenses incurred by the assessee after verification. The facts involved in the assessment year under consideration indubitably being pari materia with those present in assessment years 1996-97 and 1997-98, the aforesaid Tribunal decisions for these years is squarely applicable for this year also. Therefore, respectfully following the said Tribunal order, in the assessee’s own case, for this year also, it is held that reimbursement of expenses cannot be considered as the income of the assessee. The Assessing Officer is directed to delete the amount of reimbursement of actual expenses incurred by the assessee, after verification. As a result, the appeal is partly allowed, as indicated.
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