TMI Blog2018 (2) TMI 1628X X X X Extracts X X X X X X X X Extracts X X X X ..... ted position as emanating from the impugned order that the aforesaid payment made by the assessee represents its share in the expenses incurred by the group companies on cost to cost basis. No material has been brought on record by the ld. DR to demonstrate that it was not a reimbursement but a payment made with some mark-up having profit element. It is a settled legal position that when reimburse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is not taxable in India. In view of the fact that the amount paid by the assessee to non-residents is not chargeable to tax in their hands and, as such, the provisions of section 195 of the Act are not attracted, there can be no question of applying section 40(a)(i) for making disallowance in the hands of the assessee. - Decided against revenue. - ITA No.3353/Del/2016 - - - Dated:- 5-1-2018 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ource was made before making such payment, the Assessing Officer called upon the assessee to explain as to why the disallowance be not made u/s 40(a)(i) for default in making deduction of tax at source u/s 195 of the Act. The assessee submitted that Group charges were the assessee s share in the overall group expenses incurred by the foreign group companies for corporate administration, finance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se of this appeal ex parte qua the assessee but on merits. It is an admitted position as emanating from the impugned order that the aforesaid payment made by the assessee represents its share in the expenses incurred by the group companies on cost to cost basis. No material has been brought on record by the ld. DR to demonstrate that it was not a reimbursement but a payment made with some mark-u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 014) 364 ITR 227 (Bom) holding that payment by way of reimbursement of expenses is not taxable in India. In view of the fact that the amount paid by the assessee to non-residents is not chargeable to tax in their hands and, as such, the provisions of section 195 of the Act are not attracted, there can be no question of applying section 40(a)(i) for making disallowance in the hands of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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