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2018 (3) TMI 1037 - AT - Income TaxTDS u/s 194C - Non deduction of tds on reimbursement of expenses made to group companies - invoking the provisions of section 40a(ia) - Held that:- As decided in assessee's own case [2012 (11) TMI 1155 - ITAT MUMBAI] disallowance cannot be made as it has not been shown or established that aforementioned payments were made by the assessee to the aforementioned group concerns against any contract work carried out by them for the assessee. In the case of reimbursement of expenses, the expenditure incurred is related to the person who has not made the original payment. The payment of expenditure is made by “X” party on behalf of “Y” party and later on the same is reimbursed to “X” party by “Y” party, the expenditure is pertaining to “Y” party and not pertaining to “X” party. - Not required to deduct TDS - Decided in favour of assessee Non TDS on advertising and promotion expenses relating to Team Lease Service Pvt. Ltd. - Held that:- As given that Rule 31ACB is applicable with effect from 19.02.2013, and that the ammendment made in section 40a(ia) of the Act came into effect from 1 April 2013, the assessee could not produced the said evidences during the course of the assessment proceedings, which were concluded prior to 19.02. 2013. The assessee only requested for remitting the matter back to the file of the AO for verification of the certificate and accordingly deciding the issue. Hence, we remit this issue back to file of the AO for limited verification only to give effect to the direction mentioned above.
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