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2014 (1) TMI 986 - ITAT DELHIDetermination of income - Held that:- The liaison office, apart from having Chief Representative Officer and other staff, is also having a Technical Expert - The employees of the assessee company are promoting the sales of the goods of the assessee company as per service conditions - There is a sales incentive plan by which employees are provided the incentive for achieving the sales target and the performance of the employees is being judged by the orders secured by the assessee company - All these activities clearly establish that the liaison office of the assessee was promoting the sales of the assessee company in India. In all the three years, the liaison office received more amount than the expenses actually incurred by the liaison office - The Assessing Officer himself has not treated reimbursement of expenses as income - The amount received by liaison office over and above the expenses actually incurred, year after year, was treated as income - Following Commissioner Of Income-Tax Versus Industrial Engineering Projects Pvt. Limited [1992 (7) TMI 38 - DELHI High Court] - To the extent of the receipt representing reimbursement of the expenses the same were not taxable - It is only when there was surplus that the same should be taxed - Decided against assessee.
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