Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (5) TMI 13 - AT - Income TaxDisallowance u/s 40(a)(ia) - reimbursement of expenditure paid to Prestige Holidays Resorts - Held that:- Since it is a fact that assessee has reimbursed the telephone charges, printing and stationery and business promotion expenses in terms of Clause 7 of the marketing agency agreement to the said Prestige Holidays Resorts Pvt Ltd, the reimbursement of the expenditure does not call for any deduction of tax, as held by in SIEMENS AKTIONGESELLSCHAFT case [2008 (11) TMI 74 - BOMBAY HIGH COURT] relied upon by the CIT (A). Whatever commission was paid by assessee, that amount was already covered by the TDS on which there is no dispute. In favour of assessee. Tax an 50% of the money forfeited by assessee from the defaulted members - Held that:- Assessee is consistently following the accounting treatment in a rationale manner as 50% of the retention money was kept aside by assessee to meet the eventuality of having to refund the amounts to prospective customers who do not pay the remaining installments because of genuine reasons of emergency, accident, hospitalization etc. This method of accounting has been followed by assessee right since its inception and has always been accepted in earlier years. Had AO excluded the amount offered during the year on the same principles in which he brought the balance 50% of the amount to tax, there could have been some justification in the action of AO. He did not do so. In favour of assessee
|