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2012 (2) TMI 549 - AT - Income TaxOrder passed u/s 201(1) and 201(1A) - Secondment of Employee - Held that:- Host company shall take all reasonable actions necessary to ensure that the Employee is in compliance with all applicable local laws, regulations or other requirements applicable to immigration and the services. The Employee will report to, and be under the direction and control of, Host Company and comply with Host Company’s policies and procedures applicable to the services, including without limitation, reasonable directives of Host Company concerning job safety and confidentiality in the handling of data and information. Home Company represents that, to the best of its knowledge; (i) the Employee has,or will have, the professional training and skills necessary to fulfill the functions he/she is to perform for the Host Company during the secondment based upon the requirements provided by Host Company, and (ii) Home Company has obtained, or promptly shall obtain, from the Employee his/her consent to the secondment. Employee-Related Costs - Held that:- During the period of this agreement, for administrative convenience, the Home Company shall make payment of salary, bonus and all other benefits to the Employee as per the terms with the Employee on behalf of the Host Company. Host Company shall promptly reimburse Home Company for any and all costs in borne on its behalf in accordance with sec.3. Costs of Host Company. Unless agreed upon otherwise in writing between the parties. Host Company shall bear and directly pay all the related local costs and expenses. Such costs may include, but shall not limited to, housing, rent, utilities, furniture, company car or other transportation and any other foreign service allowances. As can be seen from the above clauses, the facts of the case before us are exactly the same. In view of the same, we do not see any reason to take any other view. In view of the same, assessee’s appeal is allowed.
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