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TMI Blog2015 (9) TMI 1429X X X X Extracts X X X X X X X X Extracts X X X X ..... en there is no requirement to deduct TDS, in view of the decision of Hon’ble High Court in the case of CIT vs. Siemens (2016 (4) TMI 791 - GUJARAT HIGH COURT ). Thus, the finding of the CIT(A) that there was no requirement to deduct TDS on such reimbursement of cost is factually and legally correct and is therefore, upheld. - Decided in favour of assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... ₹ 17,307,000 to its group company. The Appellant was earlier called Pratham Investments Trading Private Limited (PITPL). The Goldman Sachs Group acquired 100% stake in PITPL, pursuant to obtaining regulatory approvals, in May 2008. Pursuant to completing the acquisition, GSIFPL leveraged on the employees and other infrastructure of its group company in India, GSISPL. Accordingly, GSIFPL reimbursed the following expenditure incurred by GSISPL and allocated to GSIFPL, aggregating to ₹ 17,307,000 which are as follows: Particulars Amount(Rs) Employee related cost 11,238,600 Rent 456,719 Corporate Recharges 577,634 Depreciation 34,385 Cost of support functions such as human resource, Finance, legal etc. 5,000,000 Total ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o pay back, to make restoration, to repay that expended, to indemnify or make whole'. 60. Accordingly, payments made towards meeting actual expenses incurred should qualify as reimbursements. As a pure reimbursement of expense would not include any profit, such payment should never constitute 'income' of the recipient. Where expenses have been incurred by the recipient at the behest of n behalf of or for the benefit of another person, and the same 'e rightly reimbursed to the recipient, (in which case, by effecting reimbursement, the expenses were correctly borne by the other son), such reimbursement are mere recoupment of expenses and would not constitute income of the recipient. Besides this, reliance was also placed on various de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and also the submissions made by the parties, we find that assessee has reimbursed expenditure amounting to ₹ 1,73,07,000/- to GSIPL which were incurred by it on the following heads :- Particulars Amount(Rs) Employee related cost 11,238,600 Rent 456,719 Corporate Recharges 577,634 Depreciation 34,385 Cost of support functions such as human resource, Finance, legal etc. 5,000,000 Total 17,307,000 in pursuance of "Cost Allocation & Recharged Agreement" between the assessee and the said company, whereby GSIPL was required to incur cost and make payments after deducting the TDS. Such cost was then recharged to the assessee. Such recharged of cost was purely on account of reimbursement of expenses which were incurred by GS ..... X X X X Extracts X X X X X X X X Extracts X X X X
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