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2013 (2) TMI 259 - AT - Income TaxDisallowance u/s 40(a)(ia) – TDS on reimburse of expense - The assessee is a Joint Venture Company promoted by GAIL & HPCL for distribution and marketing - GAIL and HPCL deputed their personnel who worked under the control and management of Joint Venture - Salary, cost of these employees are a charge on the profits of the assessee - The employees were carrying out the work of the Assessee as its employees not carrying out the work on behalf of GAIL or HPCL – Held that:- Such payment cannot be considered as payment towards work executed by GAIL and HPCL in the course of work contract. Following the decision in case of UNITED HOTELS LTD. (2004 (11) TMI 293 - ITAT DELHI-E) that reimbursement of salary to the deputed personnel would not attract deduction of tax at source – In favour of assessee Disallowance of expense - Feasibility studies of earlier years, written off – Amount represents payments made to GAIL and HPCL during F.Y. 2004-05 and 2005-06 towards reimbursement of cost of salary of certain employees - These employees were engaged in planning, procurement of fixed assets, liaison with Government authorities for various approvals and other activities pertaining to various projects proposed to be undertaken in respect of its CNG business - Held that:- Following the decision in case of LIC Housing Finance Limited. (2006 (4) TMI 183 - ITAT BOMBAY-H) that all the expenditure specified in Sec. 35D (2) incurred before commencement of business is eligible for amortisation u/s. 35D (1)(i). Direct to A.O. to consider said expenditure u/s 35D – In favour of assessee
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