TMI Blog2015 (9) TMI 1429X X X X Extracts X X X X X X X X Extracts X X X X ..... f CIT vs. Siemens (2016 (4) TMI 791 - GUJARAT HIGH COURT ). Thus, the finding of the CIT(A) that there was no requirement to deduct TDS on such reimbursement of cost is factually and legally correct and is therefore, upheld. - Decided in favour of assessee. - ITA No. : 2518/Mum/2013 - - - Dated:- 4-9-2015 - SHRI AMIT SHUKLA, JUDICIAL MEMBER AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER For the Appellant : Shri B D Naik For the Respondent : Shri J D Mistry ORDER PER AMIT SHUKLA, JM: The aforesaid appeal has been filed by the revenue against impugned order dated 16.01.2013, passed by CIT(A)-2, Mumbai for quantum of assessment passed u/s 143(3) for the assessment year 2009-10 on the sole ground, which reads as under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s group company. The Appellant was earlier called Pratham Investments Trading Private Limited (PITPL). The Goldman Sachs Group acquired 100% stake in PITPL, pursuant to obtaining regulatory approvals, in May 2008. Pursuant to completing the acquisition, GSIFPL leveraged on the employees and other infrastructure of its group company in India, GSISPL. Accordingly, GSIFPL reimbursed the following expenditure incurred by GSISPL and allocated to GSIFPL, aggregating to ₹ 17,307,000 which are as follows: Particulars Amount(Rs) Employee related cost 11,238,600 Rent 456,719 Corporate Recharges 577 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to above, we wish to submit that the term 'reimbursement' has not been defined in the Act. Accordingly, it should partake the meaning assigned to it in common parlance. The meaning of the term reimbursement in Law Lexicon is 'to pay back, to make restoration, to repay that expended, to indemnify or make whole . 60. Accordingly, payments made towards meeting actual expenses incurred should qualify as reimbursements. As a pure reimbursement of expense would not include any profit, such payment should never constitute income of the recipient. Where expenses have been incurred by the recipient at the behest of n behalf of or for the benefit of another person, and the same 'e rightly reimbursed to the recipient, (in whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and also pointed out that the tax has already been deducted by the other company while making payment to third parties as noted by the CIT(A) in para 3.8 of the appellate order. 5. After considering the relevant finding given in the impugned order and also the submissions made by the parties, we find that assessee has reimbursed expenditure amounting to ₹ 1,73,07,000/- to GSIPL which were incurred by it on the following heads :- Particulars Amount(Rs) Employee related cost 11,238,600 Rent 456,719 Corporate Recharges 577,634 Depreciation 34,385 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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