Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (10) TMI 734 - ITAT DELHIExpenses incurred in Russia for realization of contracts in India - deductibility of expenses against income attributable to Indian PE when these expenses are claimed to have been entered in books of accounts of head office in Russia - CIT(A) allowing partially claim of expenses on the ground of additional evidences admitted for the assessment year 2006-07 - AO disallowed these expenses on the ground that no details thereof were furnished and also no TDS was made and therefore these were not to be allowed as deduction u/s. 40(a)(i) - HELD THAT:- Having admitted the additional evidences, the ld. CIT(A) further went ahead in determining whether the expenses are allowable under the provisions of the Income Tax Act and also with specific reference to TDS and Section 40(a)(ia). The ld. CIT(A) examined the various expenses like salary for Russian specialists, cost of equipment transportation, depreciation of equipment deployed in India, supply of spare parts, taxes paid for equipment and other project expenses. Having examined, the ld. CIT(A) allowed/disallowed various heads of expenditure. Hence, the grounds taken up by the revenue that the ld. CIT(A) erred in admitting the additional evidences cannot be held to be valid on facts of the case. Further, the grounds of the revenue that the ld. CIT(A) erred in allowing the claim of the expenses cannot be held to be valid as the ld. CIT(A) has verified each and every expenses claimed by the Assessee before allowing the same. - Decided against revenue.
|