Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (1) TMI 227 - ITAT MUMBAIDisallowance u/s 40(a)(ia) of the Act – CBDT’s circular No.715 nor considered – Applicability of TDS on payments of actual reimbursements – Held that:- Nothing is brought to support that the payments contain the profit element passed on to the payee - There is no doubt that the circular apply to the payments which contains the income element – Following CIT vs. Siemens Aktiongesellschaft [2008 (11) TMI 74 - BOMBAY HIGH COURT] - when there is no element of income and the payment is only the reimbursement of expenses then no disallowance can be made u/s 40(a)(ia) of the Act – Decided against Revenue. Disallowance on account of Electricity expenses – Held that:- The expenditure was incurred by the assessee solely in respect of the properties used by the assessee for business purposes - nothing is brought to our notice that the facts require any changes - Considering the business nature of the expenditure, the assessee entitled to claim the same as an allowable deduction - No disallowance is called for - the direction given by the CIT (A) for deletion of the addition on account of electricity charges, does not call for any interference – Decided against Revenue.
|