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2014 (6) TMI 1037 - BOMBAY HIGH COURTDisallowance 40(a)(ia) - expenses paid by the assessee company to its associate company on cost sharing basis - HELD THAT:- If these expenses have been incurred in the business of the associate/subsidiary and these are payments made to the regular employees employed by the subsidiary/associate and towards their salary, then, the reimbursement of such expenses by the present assessee would not require it to make any deduction. Tax would not be required to be deducted at source. In such circumstances and going by the factual position which is undisputed, we are of the view that the Tribunal was not required to answer any larger question or decide a wider controversy. Even we are not required to go into the same considering the peculiar facts and circumstances and the nature of the arrangement. The payment is thus, not for any service but as reimbursement of expenses is the conclusion reached upon noticing the undisputed factual position. In such circumstances, the view taken is a possible view and the appeal, therefore, does not raise any substantial question of law. The appeal, is therefore, dismissed.
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