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2018 (9) TMI 860 - AT - Income TaxTDS u/s 192 - reimbursement of salary to the Member of Joint Venture (AOP) - expenses from non-deduction of tax at source under section 40(ba) - Held that:- The payments contemplated in sec. 40(ba) should constitute “Share income from AOP” in the hands of the recipient member. In the instant case, the payments made by the assessee to M/s ITDCL do not constitute “Share income” in the hands of M/s ITDCL, but it merely offsets the expenditure incurred by it, i.e., the money has been received by M/s ITDCL towards reimbursement of expenses incurred by it on its employees on behalf of the assessee. As the bench specifically asked A.R as to whether M/s ITDCL has duly deducted tax at source from the salary payments made by it to its employees, who were deputed to the assessee. As A.R submitted that M/s ITDCL has duly deducted tax at source from the salary payments made to its employees and further the assessee has also clarified this aspect to the tax authorities. Thus we are of the view that the provisions of sec. 40(ba) shall not apply to the payment given to M/s ITDCL, since the said payments have not been received by it on its own account contemplated in sec. 67A r.w.s. 40(ba) of the Act and hence the same shall not acquire the character of “share income from AOP” in its hands. Accordingly we set aside the order passed by Ld CIT(A) on this issue. - Decided in favour of assessee
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