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2014 (1) TMI 304 - AT - Income TaxAddition made u/s 40(a)(ia) of the Act – Liability to deduct TDS as per Section 194H of the Act – Nature of Expenditure – Commission OR reimbursement expenditure – Held that:- The payment is reimbursement of the expenses and are not the commission as the concerned party did not give any services in respect of the payment of expenditures made - Providing services is essentially requirement of the nature of transaction of a commission - Since this condition is not satisfied, thus, it is a case of reimbursement of the expenses incurred by the concerned party on behalf of the assessee – thus, the Revenue authority is not correct in taking such expenses as commission expenses - The finding of Revenue Authorities is on presumption basis, without considering the relevant agreement/documents and books of account maintained by the assessee - orders of Revenue Authorities set aside and the claim of the assessee is allowed - this is not a commission payment, thus, there is no question of deducting tax at source under Section 194H of the Act - the payment is not subject to tax deducted at source, provisions of Section 40(a)(ia) of the Act is not applicable – Decided in favour of Assessee.
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