TMI Blog2019 (5) TMI 1257X X X X Extracts X X X X X X X X Extracts X X X X ..... e whether the impugned payments are reimbursements or not. We would like to make it clear that after verification, the Assessing Officer is free to make any enquiry he deems it fit to be made in the hands of the regional distributor as per the provisions of law. - Appeal filed by the assessee is allowed for statistical purposes. - ITA No. 2341/DEL/2015 - - - Dated:- 29-3-2019 - Shri N.K. Billaiya, Accountant Member, And Shri K.N. Chary, Judicial Member For the Assessee : Shri Ajay Vohra, Sr Adv., Shri Aditya Vohra, Adv, Ms. Meenal Goyal, CA For the Revenue : Shri J.K. Mishra, CIT. DR ORDER PER N.K. BILLAIYA, ACCOUNTANT MEMBER, This appeal by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (iii) Man Power reimbursement RDS ₹ 2,45,80,000/- Total ₹ 15,93,23,093/- 6. The assessee was asked to explain as to why this payment should not be disallowed u/s 40(a)(ia) of the Act. The assessee explained that these are nothing but reimbursements of expenditure incurred by the regional distributors for brand promotion of the company s products by advertisement in various forms. 7. The contention of the assessee did not find any favour with the Assessing Officer who was of the firm belief that the assessee was liable to deduct tax at sour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the impugned payment was reimbursement of expenses, no further verification is required. The ld. AR strongly placed reliance on the decision of the Hon'ble Allahabad High Court in the case of Jagran Prakashan Ltd Vs. DCIT 345 ITR 288. It is the say of the ld. AR that it is a well settled proposition of law that no TDS is required on reimbursements as held by the Hon'ble Jurisdictional High Court of Delhi in the case of Fortis Healthcare Ltd 181 Taxmann 257 and DLF Commercial Project Corporation ITA No. 507 of 2013. 11. The ld. AR further drew our attention to the relevant clauses of the agreement with one of the distributors namely, Delta Prime Marketing Pvt Ltd. and pointed out that under the heading Relation of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... raised in the name of Tenet Agencies which is the regional distributor of Radiant Distributors for advertising and marketing and Exhibit 27 is the invoice raised by Street Smart in the name of Radiant Distributors which is the regional distributor. 14. After considering these sample invoices, we are of the considered opinion that the payments made by the appellants to its regional distributors are nothing but reimbursement of expenses. However, in the interest of justice and fair play, we deem it fit to restore this issue to the file of the Assessing Officer. The assessee is directed to furnish all the invoices raised by its regional distributor on the basis of which it has made payment of ₹ 15.93 crores as reimburseme ..... X X X X Extracts X X X X X X X X Extracts X X X X
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