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2021 (5) TMI 140 - AT - Income TaxDisallowance of Expenditure under section 40(a)(ia) - reimbursement of salary cost paid to its related party on the ground that no taxes have been withheld on the same - counsel made submissions that he is ready to produce the evidence that the holding company has deducted TDS on reimbursement of salary - HELD THAT:- We are of the view that once the holding Company MIDCO Limited has deducted TDS on salary to seconded employees, the assessee is not required to deduct TDS on the same salary because there is no markup. Hence, we remit the this issue back to the file of the AO just for the purpose of verification that the holding company MIDCO Limited is deducted the TDS and the assessee is able to prove that the holding company MIDCO Limited has deducted the TDS then no disallowance is to be made but assessee has to produce the evidence before the Assessing Officer. In term of the above, the matter is remanded back to the file of the Assessing Officer. Appeal of the assessee is allowed for statistical purposes.
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