9911796707
TMI Blog2009 (1) TMI 842X X X X Extracts X X X X X X X X Extracts X X X X ..... from other sources - Accordingly, AO made an addition under the head income from other sources. HELD THAT:- We are of the view that the judgment of the Tribunal deserves to be upheld. Two concurrent authorities i.e., CIT(A) as well as the Tribunal have found that the money received by the assessee from SRL was nothing but reimbursement of expenses incurred by the assessee in respect of common services extended by the assessee to SRL. The said authorities have also found as a fact that the expenses incurred by the assessee are equivalent to the monies received by the assessee from SRL and hence, no income would arise to the assessee if the expenses are set-off there being a direct nexus between the two. In view of these findings of fact w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ministrative expenses. It is not disputed that the expenses were incurred by the Assessee during the relevant period and were debited in the books of account under the head pre-operative expenses . 4. SRL in terms of aforementioned agreement reimbursed a sum of ₹ 18 lakhs to the Assessee towards its share of common expenses. However, at the time of reimbursing the expenses, tax at source was deducted by SRL and deposited with the Income-tax authorities. In view of TDS being deducted the Assessing Officer queried as to why the sum of ₹ 18 lakhs received by the assessee ought not to be brought to tax under the head income from other sources. The assessee by a letter dated 24-12-2003 furnished its explanation and objected to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the money received was for sharing of common services, and that services provided by the assessee were purely based on reimbursement of cost on which the assessee had incurred an equivalent amount of expenditure. The CIT(A) further held that in case, even if, it is presumed that sum of ₹ 18 lakhs could be brought to tax as income from other sources then, the amount of expenditure incurred which is equivalent to the amount received will have to be set off on account of the fact that there was a direct nexus between what was received that which was expended. The observations to this effect are found in para 2.3 of the order of the CIT(A). 7. The revenue being aggrieved preferred an appeal. The Tribunal by the impugned judgment notic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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