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TMI Blog2015 (8) TMI 1398X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal on facts has held that the payment is only reimbursement of expenses. This finding of fact has not been shown to be perverse and / or arbitrary. - INCOME TAX APPEAL NO. 1914 OF 2013. - - - Dated:- 4-8-2015 - M. S. Sanklecha N. M. Jamdar, JJ. Mr.Arvind Pinto a/w Ms.Padma Diwakar, for the Appellant. Dr.K.Shivram, Senior Advocate a/w Mr.Rahul Hakani i/b Mr.Rahul Hakani Ms.Neelam Jadhav, for the Respondent. JUDGEMENT This Appeal has been filed by the Revenue under Section 260A of the Income tax Act, 1961 challenging the order dated 06 March 2013 passed by the Income Tax Appellate Tribunal (the Tribunal). The Assessment year involved is Assessment year 20062007. 2 Mr. Pinto, learned counsel appearing for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payment to its holding Company. 4 In appeal, Commissioner of Income tax (Appeals) (CIT(Appeals)) upheld the order of the Assessing officer. On further appeal the Tribunal by the impugned order held that these amounts were paid by the Respondent to its holding company as and by way of reimbursement of expenses. To reach the aforesaid conclusion the impugned order relies upon agreement dated 5 June 2005 which inter alia provides that the holding Company would provide various services such as Accounting services, Legal and Professional services, Communication, R D etc. to its group companies including the Respondent-assessee The agreement further provides that the overhead costs incurred in carrying out these activities for various gro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e authorities under the Act i.e. the Assessing officer as well as the CIT (Appeals) had allowed an amount of ₹ 34.94 lakhs as a deduction but the same was not available to the Respondent assessee only because tax on the amount paid as reimbursement to its holding Company was not deducted. Thus, all the authorities have accepted that the amount of ₹ 34.94 lakhs which has been paid as reimbursement of expenses is deductable but the same is being disallowed only for failure to deduct taxes on the payment made. The Tribunal by the impugned order has held that there is no occasion to deduct tax in respect of the reimbursement of expenses paid to a holding Company. This is so as the obligation to deduct tax under Section 195 of the Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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