The Pr. Commissioner of Income-tax-1 v. Goldmansach (India) Finances Pvt. Ltd
[Citation -2019-LL-0226-36]
| Citation | 2019-LL-0226-36 |
|---|---|
| Appellant Name | The Pr. Commissioner of Income-tax-1 |
| Respondent Name | Goldmansach (India) Finances Pvt. Ltd. |
| Court | HIGH COURT OF BOMBAY |
| Relevant Act | Income-tax |
| Date of Order | 26/02/2019 |
| Judgment | View Judgment |
| Keyword Tags | nature of reimbursement • question of law • employee cost • rent • reimbursement of expenditure • non-deduction of tax at source |
| Bot Summary: | P.C: The Revenue is in Appeal against the Judgment of the Income Tax Appellate Tribunal, raising the following questions for our consideration: Whether on the facts and in the circumstances of the case and in law, the Tribunal erred in deleting the disallowance u/s. 40(a)(ia) on account of non deduction of tax at sources on account of reimbursement of expenses 2 The Revenue objects to the deletion of disallowance made by the Assessing Officer under Section 40(a) of the Income Tax Act, 1961 on the ground that, the assesssee while making payment of Rs.1.73 Crores had not deducted tax at source, though required in law. S.R.JOSHI 1 of 2 ::: Uploaded on - 28/02/2019 ::: Downloaded on - 01/03/2019 13:42:39 ::: itxa 1742 2016.odt 3 The Tribunal held that, the amount in question was by way of reimbursement of costs. The Tribunal held that Assessee had paid such sums towards administrative costs such as the employee cost, rent, finance and legal corporate recharge etc. The Tribunal noted that, GSIPL had provided services to the assessee by deploying its employees for such work and the cost was for reimbursement for such expenses besides other related expenditure. Revenue was unable to dislodge these findings of fact recorded by the Tribunal. As held by the Supreme Court in the case of Director of Income Tax v/s. |