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TMI Blog2011 (3) TMI 388X X X X Extracts X X X X X X X X Extracts X X X X ..... he Indian Capital Markets. The Assessing Officer noted that under the head "Operating Administration and Other Expenses" the assessee had claimed an expenditure of Rs. 22,08,793/- towards the deputed personnel cost. The said payment was claimed to be made to National Stock Exchange of India Ltd. and CRISIL who were the two holding companies of the assessee company. The AO asked as to why the TDS was not deducted on said payments. The assessee explained to the AO that it is a joint venture between NSEIL and CRISIL who had deputed their staff to perform work for the assessee. Both parent companies incurred employment related costs with respect to all the employees on their payrolls including the ones deputed to the assessee. The salaries paid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with the assessee company. He argued that the said payment were pure reimbursement towards sharing of deputed personnel cost and there was no element of profit, payment was not made towards any service contract and also that holding companies had deducted TDS u/s. 192 of the Act from the salaries paid to the personnel deputed and reimbursed by the assessee. In its written submission the assessee relied on various case laws. The assessee also argued that sufficient details were filed during the assessment proceedings in support of its argument that the expenditure was reimbursement of personnel expenses. The assessee requested that the disallowance made by the AO should be deleted. 5. The Ld. CIT(A) deleted the disallowance made by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contradicted the same statement of the assessee that the details were filed before the AO. The Ld. Counsel for the assessee and the DR thus made a contradictory statement with respect to the fact that the details have been furnished before the AO. In these circumstances, we deem it fit to set aside the issue to the file of the AO to verify the details of expenditure and examine whether the payments were actual reimbursement of expenses pertaining to personnel deputed with the assessee company. However the AO shall restrict himself to the evidences which have been submitted before the Ld. CIT(A) while deciding the issue in accordance with law. 8. In the result, the appeal filed by the Revenue is allowed for statistical purposes. Or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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