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 1107 - AT - Income TaxTaxability towards reimbursement of expenses - assessment of income - Held that:- Tribunal in previous AY after analyzing the different terms of the agreement and examining the facts on record have recorded a factual finding that the agreement clearly envisages that fee for technical services is different from the expenses incurred on third party cost. Further, it has recorded a finding of fact that there is a clear bifurcation in the agreement between the internal cost incurred by the assessee and external cost borne or paid by the assessee on behalf of GIA India. Thus, on the basis of aforesaid facts, the Tribunal has applied the ratio laid down in case of DIT v/s A.P. Moller Maersk [2017 (2) TMI 993 - SUPREME COURT] and held that the amount received towards reimbursement of cost cannot be taxed at the hands of the assessee. Therefore, the observation of the learned DRP that Tribunal has not addressed the issue is baseless. Departmental Representative has not been able to convince us that there is any difference in facts as involved in the impugned assessment year and assessment years 2009–10 and 2011–12 on the basis of which the Tribunal has decided the issue - unless and until the decision of the Tribunal is reversed or set aside by the higher Appellate Court, it is not only binding on the subordinate authorities but judicial discipline demands that it should be followed by the other Benches of the Tribunal. More so, if such decision is rendered in assessee’s own case and under identical facts and circumstances - Decided in favour of assessee
|