Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (6) TMI 357 - AT - Income TaxTDS u/s 195 - Disallowance u/s 40(a)(i) - reimbursement of bank guarantee commission paid to non-residents - Held that:- Since the reimbursement of expenses is not taxable in the hands of payee, there is no point in compelling the assessee to still go ahead with the deduction of tax at source. This issue of non-deduction of tax at source from similar payments made to nonresidents has been decided in favor of the assessee right from AY 2003-04. - Decided in favor of assessee. Treatment of interest income - nature of income - Income from other sources or income from business - idle funds usage - Held that:- Interest mainly arose on account of fixed deposits kept with banks - since the funds were found to be surplus pending final resolution of disputes the AO had rightly assessed interest income under the head Income from Other sources - Decided against the assessee. Bank guarantee charges, travelling and conveyance of professionals and professional fees paid for the arbitration proceedings - Capital expenditure or revenue expenditure - Held that:- Assessee being a single project joint venture it cannot be said that the assessee was not carrying on business in some intervening years but in business in earlier and later years - earning of income during the year is not a prerequisite for coming to the conclusion that business is in fact carried on during the year - thus assessee is very much carrying on business in the years - ground raised by department is dismissed. Exclusion of deemed export business benefits - accrual receipts - Held that:- There is no infirmity in the order of CIT(A) for excluding the deemed export benefits which have already been taxed in the A.Y.2003-04 and Tribunal have also confirmed the action of the AO. Accordingly, there is no infirmity in the order of CIT(A) for excluding deemed export business benefits. Disallowance of 20% on travelling expenses - Held that:- All the expenses are primarily incurred in connection with the arbitration proceedings and other pending litigations. Keeping no infirmity in the order for restricting disallowance to 20% of expenses.
|