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2014 (5) TMI 386 - ITAT HYDERABADDisallowance u/s 40(a)(ia) of the Act – TDS on Reimbursement of expenses – Held that:- Though assessee submitted before the CIT(A) that the amounts are reimbursement and also CIT(A) accepted – but, the issue was not examined in correct perspective - If the amounts are to be spent by the retail dealers, assessee has to submit separate debit notes duly supported by the individual vouchers of the retail dealers - the original expenditure being incurred by the retailers, assessee acts as an agent - as per the agreement assessee has to forward the individual vouchers signed by the retail dealers with their seal and also with APBCL invoice for reimbursement of the expenditure to the retail dealers - No evidence was placed as to what assessee got from the company was reimbursement of expenditure incurred by the retailers - AO is directed to establish whether the amount is expenditure by the assessee or reimbursement of expenditure on behalf of the retailers and in case, if it is an expenditure by the assessee, whether provisions of TDS are attracted and if so, to what extent of the payments made by the assessee to various dealers - thus, the matter is required to be remitted back to the AO for adjudication – Decided in favour of Revenue.
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