2009 (1) TMI 842

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..... referred to in short as the 'Act') against, the judgment dated 30-5-2008 passed by the Income-tax Appellate Tribunal (hereinafter referred to as the 'Tribunal') in ITA No. 1222/Delhi/2005 in respect of assessment year 2001-02. 2. The only issue which arises for consideration in the present appeal is whether the Tribunal had misdirected itself in law in deleting addition of Rs. 18 lakhs made by t .....

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..... y the Assessee during the relevant period and were debited in the books of account under the head "pre-operative expenses". 4. SRL in terms of aforementioned agreement reimbursed a sum of Rs. 18 lakhs to the Assessee towards its share of common expenses. However, at the time of reimbursing the expenses, tax at source was deducted by SRL and deposited with the Income-tax authorities. In view of TD .....

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..... onceded that the deduction of tax at source by SRL had been made by the Accountant of SRL due to oversight, even though no TDS was deductible on the said payment as no part of it had income embedded in it. 5. The Assessing Officer held that assessee had received professional charges for which TDS had been deducted by SRL. With these findings the Assessing Officer concluded that sum of Rs. 18 lakh .....

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..... even if, it is presumed that sum of Rs. 18 lakhs could be brought to tax as income from other sources then, the amount of expenditure incurred which is equivalent to the amount received will have to be set off on account of the fact that there was a direct nexus between what was received that which was expended. The observations to this effect are found in para 2.3 of the order of the CIT(A). 7. .....

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..... ies i.e., CIT(A) as well as the Tribunal have found that the money received by the assessee from SRL was nothing but reimbursement of expenses incurred by the assessee in respect of common services extended by the assessee to SRL. The said authorities have also found as a fact that the expenses incurred by the assessee are equivalent to the monies received by the assessee from SRL and hence, no in .....

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