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TMI Blog2010 (3) TMI 287X X X X Extracts X X X X X X X X Extracts X X X X ..... ot taxable - 2626 OF 2009 - - - Dated:- 9-3-2010 - Dr. D.Y. Chandrachud J.P. Devadhar, JJ. Mr.Suresh Kumar for the appellant. Mr.J.B. Andhyarujina, Senior Advocate with Ms.Pallavi Divekar and Ms.Bhavana Jogle for the respondent. ORAL JUDGMENT (Per Dr.D.Y. Chandrachud, J.) 1. Admit. 2. The appeal by the Revenue against the order of the Income Tax Appellate Tribunal for assessment year 1998-1999 raises the following three questions of law: i) Whether on the facts and in the circumstances of the case and in law ITAT was justified in holding that charges towards reimbursement of expenses cannot be included in income? ii) Whether when income is taxed on gross basis, non inclusion of charges towards reimbursement of exp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al, the Tribunal dealt with the issue as regards the payment of fees received by the assessee and of the reimbursement of expenses separately. In so far as the receipt of fees was concerned, the Tribunal noted that the assessee had deputed its technicians for inspection of the equipment. Inspection could not be done unless the personnel deputed had technical knowledge in respect of the equipment to be inspected. Consequently the fees received by the assessee were held to amount to fees for technical services. In so far as the issue of reimbursement is concerned, the Tribunal held that though there was a conflict between the judgment of the Kerala High Court, which was relied upon by the Commissioner of Income Tax (Appeals) and the judgment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o. Limited (supra). The learned Division Bench was answering the following question: Whether, on the facts and in the circumstances of the case, the amounts received by the assessee (English company) from M/s. Dunlop Rubber Co. (India) Ltd., (Indian company) as per agreement dt. 29th Jan., 1957 constituted income assessable to tax? On considering the issue the learned Bench noted that the Tribunal was of the view that what was recouped by the English company was part of the expenses incurred by it. The learned Court upheld the said finding. The learned Bench was pleased to hold that sharing of expenses of the research utilised by the subsidiaries as well as the head office organisation would not be income which would be assessable to tax. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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